Bill Text: TX HB97 | 2019-2020 | 86th Legislature | Engrossed
Bill Title: Relating to the eligibility of land for appraisal for ad valorem tax purposes as qualified open-space land.
Spectrum: Bipartisan Bill
Status: (Engrossed - Dead) 2019-05-03 - Referred to Property Tax [HB97 Detail]
Download: Texas-2019-HB97-Engrossed.html
By: Rodriguez, Murphy, Guillen, Zwiener | H.B. No. 97 |
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relating to the eligibility of land for appraisal for ad valorem tax | ||
purposes as qualified open-space land. | ||
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
SECTION 1. Sections 23.51(1) and (2), Tax Code, are amended | ||
to read as follows: | ||
(1) "Qualified open-space land" means land that is | ||
currently devoted principally to agricultural use to the degree of | ||
intensity generally accepted in the area and that has been devoted | ||
principally to agricultural use or to production of timber or | ||
forest products for five of the preceding seven years or land that | ||
is used principally as an ecological laboratory by a public or | ||
private college or university and that has been used principally in | ||
that manner by a college or university for five of the preceding | ||
seven years. A chief appraiser shall distinguish between the | ||
degree of intensity required for various agricultural production | ||
methods, including organic, sustainable, pastured poultry, | ||
rotational grazing, and other uncommon production methods or | ||
systems. Qualified open-space land includes all appurtenances to | ||
the land. For the purposes of this subdivision, appurtenances to | ||
the land means private roads, dams, reservoirs, water wells, | ||
canals, ditches, terraces, and other reshapings of the soil, | ||
fences, and riparian water rights. Notwithstanding the other | ||
provisions of this subdivision, land that is currently devoted | ||
principally to wildlife management as defined by Subdivision (7)(B) | ||
or (C) to the degree of intensity generally accepted in the area | ||
qualifies for appraisal as qualified open-space land under this | ||
subchapter regardless of the manner in which the land was used in | ||
any preceding year. | ||
(2) "Agricultural use" includes but is not limited to | ||
the following activities: cultivating the soil, producing crops | ||
for human food, animal feed, or planting seed or for the production | ||
of fibers; producing fruits and vegetables; floriculture, | ||
viticulture, and horticulture; raising or keeping livestock; | ||
raising or keeping exotic animals for the production of human food | ||
or of fiber, leather, pelts, or other tangible products having a | ||
commercial value; planting cover crops or leaving land idle for the | ||
purpose of participating in a governmental program, provided the | ||
land is not used for residential purposes or a purpose inconsistent | ||
with agricultural use; and planting cover crops or leaving land | ||
idle in conjunction with normal crop or livestock rotation | ||
procedure. The term also includes the use of land to produce or | ||
harvest logs and posts for the use in constructing or repairing | ||
fences, pens, barns, or other agricultural improvements on adjacent | ||
qualified open-space land having the same owner and devoted to a | ||
different agricultural use. The term also includes the use of land | ||
for wildlife management. The term also includes the use of land to | ||
raise or keep bees for pollination or for the production of human | ||
food or other tangible products having a commercial value, provided | ||
that the land used is not less than 5 or more than 20 acres. | ||
SECTION 2. Subchapter D, Chapter 23, Tax Code, is amended by | ||
adding Section 23.5211 to read as follows: | ||
Sec. 23.5211. LIMITATION ON QUALIFICATION OF CERTAIN LAND | ||
FOR APPRAISAL BASED ON WILDLIFE MANAGEMENT USE. Land equal to or | ||
less than 20 acres in size that qualifies for appraisal under this | ||
subchapter solely on the basis that the land is used to raise or | ||
keep bees for pollination or for the production of human food or | ||
other tangible products having a commercial value may not | ||
subsequently qualify under Section 23.51(7) for appraisal under | ||
this subchapter if the owner changes the use of the land to wildlife | ||
management. | ||
SECTION 3. Subchapter D, Chapter 23, Tax Code, is amended by | ||
adding Section 23.5215 to read as follows: | ||
Sec. 23.5215. GUIDELINES FOR UNCOMMON AGRICULTURAL USES. | ||
(a) The comptroller, in consultation with the chair of the house of | ||
representatives committee on agriculture and livestock, Texas A&M | ||
AgriLife Extension Service, individuals selected by the | ||
comptroller who represent appraisal districts, and individuals | ||
selected by the comptroller who represent affected producers, shall | ||
develop guidelines for determining under what conditions the | ||
cumulative effect of multiple agricultural uses of a tract of land | ||
meets the degree of intensity generally accepted in the area. | ||
(b) The comptroller, in consultation with the chair of the | ||
house of representatives committee on agriculture and livestock, | ||
Texas A&M AgriLife Extension Service, individuals selected by the | ||
comptroller who represent appraisal districts, and individuals | ||
selected by the comptroller who represent small-scale producers, | ||
shall develop guidelines for determining under what conditions land | ||
under 10 acres in size used for the production of fruits, | ||
vegetables, poultry, hogs, sheep, or goats qualifies for appraisal | ||
under this subchapter. The guidelines must provide that land under | ||
10 acres in size that qualifies for appraisal under this subchapter | ||
solely on the basis of the guidelines developed under this section | ||
may not subsequently qualify under Section 23.51(7) for appraisal | ||
under this subchapter if the owner changes the use of the land to | ||
wildlife management. | ||
(c) The guidelines developed under this section may include | ||
recordkeeping requirements consistent with normal practices of | ||
agricultural operations. | ||
(d) The comptroller in developing guidelines under this | ||
section may consider the following factors: | ||
(1) the financial investment of a producer in an | ||
agricultural use of a tract of land; | ||
(2) the degree of active management of a producer in | ||
the agricultural use of a tract of land; | ||
(3) the percentage of a tract of land used by a | ||
producer for agricultural uses; and | ||
(4) any other factor the comptroller considers | ||
appropriate. | ||
(e) The comptroller, in cooperation with appraisal | ||
districts, shall provide educational resources to chief appraisers | ||
to assist with the appraisal of land using the guidelines developed | ||
under this section and of land using an uncommon production method, | ||
such as organic production, sustainable production, and pastured | ||
poultry. | ||
SECTION 4. This section applies only to land that first | ||
qualified for appraisal under Subchapter D, Chapter 23, Tax Code, | ||
on the basis of its use as an ecological laboratory in the 2014, | ||
2015, 2016, 2017, 2018, 2019, or 2020 tax year. The change in law | ||
made by this Act to Section 23.51(1), Tax Code, relating to the | ||
qualification of land as an ecological laboratory for appraisal | ||
under Subchapter D, Chapter 23, Tax Code, applies to land to which | ||
this section applies beginning with the tax year that begins | ||
January 1, 2027. For the 2021, 2022, 2023, 2024, 2025, and 2026 tax | ||
years, the qualification of land to which this section applies for | ||
appraisal under Subchapter D, Chapter 23, Tax Code, on the basis of | ||
its use as an ecological laboratory is governed by the law as it | ||
existed immediately before the effective date of this Act, and the | ||
former law is continued in effect for that purpose. | ||
SECTION 5. Section 23.5211, Tax Code, as added by this Act, | ||
applies only to land that did not qualify for appraisal under | ||
Subchapter D, Chapter 23, Tax Code, for the 2019 tax year on the | ||
basis of its use for wildlife management under Section 23.51(7), | ||
Tax Code. | ||
SECTION 6. Not later than September 1, 2020, the | ||
comptroller shall distribute the guidelines required by Section | ||
23.5215, Tax Code, as added by this Act, to each appraisal district. | ||
SECTION 7. Section 23.51, Tax Code, as amended by this Act, | ||
and Section 23.5215, Tax Code, as added by this Act, apply only to | ||
the appraisal of land for ad valorem tax purposes for a tax year | ||
that begins on or after January 1, 2021. | ||
SECTION 8. This Act takes effect September 1, 2019. |