| 1 | 1 | | 89R5678 CS-D |
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| 2 | 2 | | By: Perry S.B. No. 1546 |
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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 appraisal for ad valorem tax purposes of certain |
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| 10 | 10 | | land on the basis of the land's productivity value when a portion of |
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| 11 | 11 | | the land is taken for a right-of-way through an exercise of the |
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| 12 | 12 | | power of eminent domain. |
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| 13 | 13 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 14 | 14 | | SECTION 1. Subchapter C, Chapter 23, Tax Code, is amended by |
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| 15 | 15 | | adding Section 23.424 to read as follows: |
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| 16 | 16 | | Sec. 23.424. ELIGIBILITY OF LAND SUBJECT TO RIGHT-OF-WAY. |
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| 17 | 17 | | A designation of land for agricultural use under this subchapter |
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| 18 | 18 | | does not end if: |
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| 19 | 19 | | (1) a portion of the land is taken through the exercise |
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| 20 | 20 | | of the power of eminent domain for use as a right-of-way; and |
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| 21 | 21 | | (2) the portion of the land not taken through the |
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| 22 | 22 | | exercise of the power of eminent domain, regardless of the size of |
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| 23 | 23 | | that portion, otherwise qualifies for the designation. |
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| 24 | 24 | | SECTION 2. Section 23.46(e-1), Tax Code, is amended to read |
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| 25 | 25 | | as follows: |
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| 26 | 26 | | (e-1) A portion of a parcel of land is not diverted to |
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| 27 | 27 | | nonagricultural use for purposes of Subsection (c) because the |
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| 28 | 28 | | portion is subject to a right-of-way [that is less than 200 feet |
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| 29 | 29 | | wide and] that was taken by condemnation if the remainder of the |
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| 30 | 30 | | parcel of land qualifies for appraisal under this subchapter. |
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| 31 | 31 | | SECTION 3. Subchapter D, Chapter 23, Tax Code, is amended by |
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| 32 | 32 | | adding Section 23.527 to read as follows: |
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| 33 | 33 | | Sec. 23.527. QUALIFICATION OF LAND SUBJECT TO RIGHT-OF-WAY. |
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| 34 | 34 | | The eligibility of land for appraisal under this subchapter does |
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| 35 | 35 | | not end if: |
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| 36 | 36 | | (1) a portion of the land is taken through the exercise |
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| 37 | 37 | | of the power of eminent domain for use as a right-of-way; and |
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| 38 | 38 | | (2) the portion of the land not taken through the |
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| 39 | 39 | | exercise of the power of eminent domain, regardless of the size of |
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| 40 | 40 | | that portion, otherwise qualifies for appraisal under this |
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| 41 | 41 | | subchapter. |
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| 42 | 42 | | SECTION 4. The changes in law made by this Act apply only to |
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| 43 | 43 | | the appraisal of land for ad valorem tax purposes for an ad valorem |
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| 44 | 44 | | tax year that begins on or after the effective date of this Act. |
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| 45 | 45 | | SECTION 5. This Act takes effect January 1, 2026. |
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