| 1 | 1 | | 89R1254 LHC-D |
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| 2 | 2 | | By: Bell of Montgomery H.B. No. 546 |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | |
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| 6 | 6 | | |
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| 7 | 7 | | A BILL TO BE ENTITLED |
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| 8 | 8 | | AN ACT |
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| 9 | 9 | | relating to the eligibility of land taken by condemnation for |
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| 10 | 10 | | appraisal for ad valorem tax purposes as qualified open-space land. |
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| 11 | 11 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 12 | 12 | | SECTION 1. Section 23.56, Tax Code, is amended to read as |
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| 13 | 13 | | follows: |
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| 14 | 14 | | Sec. 23.56. LAND INELIGIBLE FOR APPRAISAL AS OPEN-SPACE |
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| 15 | 15 | | LAND. Land is not eligible for appraisal as provided by this |
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| 16 | 16 | | subchapter if: |
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| 17 | 17 | | (1) the land is located inside the corporate limits of |
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| 18 | 18 | | an incorporated city or town, unless: |
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| 19 | 19 | | (A) the city or town is not providing the land |
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| 20 | 20 | | with governmental and proprietary services substantially |
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| 21 | 21 | | equivalent in standard and scope to those services it provides in |
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| 22 | 22 | | other parts of the city or town with similar topography, land |
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| 23 | 23 | | utilization, and population density; |
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| 24 | 24 | | (B) the land has been devoted principally to |
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| 25 | 25 | | agricultural use continuously for the preceding five years; or |
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| 26 | 26 | | (C) the land: |
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| 27 | 27 | | (i) has been devoted principally to |
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| 28 | 28 | | agricultural use or to production of timber or forest products |
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| 29 | 29 | | continuously for the preceding five years; and |
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| 30 | 30 | | (ii) is used for wildlife management; |
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| 31 | 31 | | (2) the land is owned by an individual who is a |
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| 32 | 32 | | nonresident alien or by a foreign government if that individual or |
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| 33 | 33 | | government is required by federal law or by rule adopted pursuant to |
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| 34 | 34 | | federal law to register his ownership or acquisition of that |
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| 35 | 35 | | property; [or] |
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| 36 | 36 | | (3) the land is owned by a corporation, partnership, |
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| 37 | 37 | | trust, or other legal entity if the entity is required by federal |
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| 38 | 38 | | law or by rule adopted pursuant to federal law to register its |
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| 39 | 39 | | ownership or acquisition of that land and a nonresident alien or a |
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| 40 | 40 | | foreign government or any combination of nonresident aliens and |
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| 41 | 41 | | foreign governments own a majority interest in the entity; or |
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| 42 | 42 | | (4) the land is owned by an entity other than the state |
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| 43 | 43 | | or a political subdivision of the state that acquired the land by |
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| 44 | 44 | | condemnation. |
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| 45 | 45 | | SECTION 2. The change in law made by this Act applies only |
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| 46 | 46 | | to the appraisal of land for ad valorem tax purposes for a tax year |
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| 47 | 47 | | that begins on or after the effective date of this Act. |
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| 48 | 48 | | SECTION 3. This Act takes effect September 1, 2025. |
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