Bill Text: TX HB2428 | 2021-2022 | 87th Legislature | Comm Sub

Texas House Bill 2428 (Prior Session Legislation)

Bill Title: Relating to the calculation of net to land in the appraisal of open-space land for ad valorem tax purposes.

Spectrum: Partisan Bill (Republican 2-0)

Status: (Engrossed - Dead) 2021-05-26 - Removed from local & uncontested calendar [HB2428 Detail]

Download: Texas-2021-HB2428-Comm_Sub.html



	By: Murr (Senate Sponsor - Perry)	H.B. No. 2428
	(In the Senate - Received from the House May 10, 2021;
	May 14, 2021, read first time and referred to Committee on Local
	Government; May 22, 2021, reported favorably by the following
	vote: Yeas 8, Nays 0; May 22, 2021, sent to printer.)
Click here to see the committee vote


	A BILL TO BE ENTITLED
	AN ACT

	relating to the calculation of net to land in the appraisal of
	open-space land for ad valorem tax purposes.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
	SECTION 1. Section 23.51(4), Tax Code, is amended to read as
	follows:
	(4) "Net to land" means the average annual net income
	derived from the use of open-space land that would have been earned
	from the land during the five-year period preceding the year before
	the appraisal by an owner using ordinary prudence in the management
	of the land and the farm crops or livestock produced or supported on
	the land and, in addition, any income received from hunting or
	recreational leases. The chief appraiser shall calculate net to
	land by considering the income that would be due to the owner of the
	land under cash lease, share lease, or whatever lease arrangement
	is typical in that area for that category of land, and all expenses
	directly attributable to the agricultural use of the land by the
	owner shall be subtracted from this owner income and the results
	shall be used in income capitalization. In calculating net to land,
	a reasonable deduction shall be made for any depletion that occurs
	of underground water used in the agricultural operation. In this
	subdivision, "wildlife or livestock disease or pest area" means an
	area designated by a state agency as an area in which a disease or
	pest that affects wildlife or livestock exists or may exist,
	including a chronic wasting disease containment or surveillance
	zone and an area subject to a quarantine authorized by Subtitle C,
	Title 6, Agriculture Code. In calculating net to land of open-space
	land located in or adjacent to a wildlife or livestock disease or
	pest area, the chief appraiser shall take into consideration the
	effect that the presence of the applicable disease or pest or the
	designation of the area has on the net income from the land. For
	land that qualifies under Subdivision (7) for appraisal under this
	subchapter, the chief appraiser may not consider in the calculation
	of net to land the income that would be due to the owner under a
	hunting or recreational lease of the land.
	SECTION 2. The change in law made by this Act applies only
	to the appraisal of open-space land for a tax year that begins on or
	after the effective date of this Act.
	SECTION 3. This Act takes effect January 1, 2022.

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