Bill Text: TX HB260 | 2023-2024 | 88th Legislature | Enrolled


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: (Passed) 2023-06-02 - Effective on 1/1/24 [HB260 Detail]

Download: Texas-2023-HB260-Enrolled.html
 
 
  H.B. No. 260
 
 
 
 
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, 2024.
 
 
  ______________________________ ______________________________
     President of the Senate Speaker of the House     
 
 
         I certify that H.B. No. 260 was passed by the House on April
  14, 2023, by the following vote:  Yeas 140, Nays 3, 2 present, not
  voting.
 
  ______________________________
  Chief Clerk of the House   
 
 
         I certify that H.B. No. 260 was passed by the Senate on May
  16, 2023, by the following vote:  Yeas 31, Nays 0.
 
  ______________________________
  Secretary of the Senate    
  APPROVED:  _____________________
                     Date          
   
            _____________________
                   Governor       
feedback