Relating to the repeal of the additional ad valorem taxes imposed as a result of a change of use of certain land.

89(R) HB 1827 - Introduced version - Bill Text

89R5296 DRS-D

By: Slawson

H.B. No. 1827

A BILL TO BE ENTITLED

AN ACT

relating to the repeal of the additional ad valorem taxes imposed as

a result of a change of use of certain land.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Section 1.07(d), Tax Code, is amended to read as

follows:

(d) A notice required by Section 11.43(q), 11.45(d),

23.44(d), 23.46(c) or (f), 23.54(e), 23.541(c), [
23.55(e),
]

23.551(a), 23.57(d), [
23.76(e),
] 23.79(d), or 23.85(d) must be sent

by certified mail.

SECTION 2. Section 23.20(g), Tax Code, is amended to read as

follows:

(g) A waiver of a special appraisal of property under

Subchapter C[
, D, E, F, or G of this chapter
] does not constitute a

change of use of the property or diversion of the property to

another use for purposes of the imposition of additional taxes

under
that subchapter
[
any of those subchapters
].

SECTION 3. Section 23.52(e), Tax Code, is amended to read as

follows:

(e)
The
[
For the purposes of Section 23.55 of this code,

the
] chief appraiser [
also
] shall determine the market value of

qualified open-space land and shall record both the market value

and the appraised value in the appraisal records.

SECTION 4. Section 23.524(e), Tax Code, is amended to read

as follows:

(e)
Notwithstanding Subsection (b) or (c), the eligibility

of
[
For the purposes of this subchapter, a change of use of the
]

land subject to this section
for appraisal under this subchapter
is

considered to have
ended
[
occurred
] on the day the period

prescribed by Subsection (c) begins if the owner has not fully

complied with the terms of the agreement described by Subsection

(b) on the date the agreement ends.

SECTION 5. Sections 23.551(a) and (d), Tax Code, are

amended to read as follows:

(a) If land appraised as provided by this subchapter is

owned by an individual 65 years of age or older, before making a

determination that [
a change in use of
] the land
is no longer

eligible for appraisal under this subchapter
[
has occurred
], the

chief appraiser shall deliver a written notice to the owner stating

that the chief appraiser believes [
a change in use of
] the land may

no longer be eligible for appraisal under this subchapter
[
have

occurred
].

(d) If the chief appraiser does not receive a response on or

before the 60th day after the date the notice is mailed, the chief

appraiser must make a reasonable effort to locate the owner and

determine whether the land remains eligible to be appraised as

provided by this subchapter before determining that [
a change in

use of
] the land
is no longer eligible for appraisal under this

subchapter
[
has occurred
].

SECTION 6. Section 23.73(c), Tax Code, is amended to read as

follows:

(c)
The
[
For the purposes of Section 23.76 of this code,

the
] chief appraiser [
also
] shall determine the market value of

qualified timber land and shall record both the market value and the

appraised value in the appraisal records.

SECTION 7. Sections 31.01(c) and (c-1), Tax Code, are

amended to read as follows:

(c) The tax bill or a separate statement accompanying the

tax bill shall:

(1) identify the property subject to the tax;

(2) state the appraised value, assessed value, and

taxable value of the property;

(3) if the property is land appraised as provided by

Subchapter C, [
D, E, or H,
] Chapter 23, state the market value and

the taxable value for purposes of deferred or additional taxation

as provided by Section 23.46[
, 23.55, 23.76, or 23.9807, as

applicable
];

(4)
if the property is land appraised as provided by

Subchapter D, E, or H, Chapter 23, state the market value of the

land;

(5)
state the assessment ratio for the
taxing
unit;

(6)
[
(5)
] state the type and amount of any partial

exemption applicable to the property, indicating whether it applies

to appraised or assessed value;

(7)
[
(6)
] state the total tax rate for the
taxing

unit;

(8)
[
(7)
] state the amount of tax due, the due date,

and the delinquency date;

(9)
[
(8)
] explain the payment option and discounts

provided by Sections 31.03 and 31.05, if available to the
taxing

unit's taxpayers, and state the date on which each of the discount

periods provided by Section 31.05 concludes, if the discounts are

available;

(10)
[
(9)
] state the rates of penalty and interest

imposed for delinquent payment of the tax;

(11)
[
(10)
] include the name and telephone number of

the assessor for the
taxing
unit and, if different, of the collector

for the
taxing
unit;

(12)
[
(11)
] for real property, state for the current

tax year and each of the preceding five tax years:

(A) the appraised value and taxable value of the

property;

(B) the total tax rate for the
taxing
unit;

(C) the amount of taxes imposed on the property

by the
taxing
unit; and

(D) the difference, expressed as a percent

increase or decrease, as applicable, in the amount of taxes imposed

on the property by the
taxing
unit compared to the amount imposed

for the preceding tax year; and

(13)
[
(12)
] for real property, state the differences,

expressed as a percent increase or decrease, as applicable, in the

following for the current tax year as compared to the fifth tax year

before that tax year:

(A) the appraised value and taxable value of the

property;

(B) the total tax rate for the
taxing
unit; and

(C) the amount of taxes imposed on the property

by the
taxing
unit.

(c-1) If for any of the preceding six tax years any

information required by Subsection
(c)(12)
[
(c)(11)
] or
(13)
[
(12)
]

to be included in a tax bill or separate statement is unavailable,

the tax bill or statement must state that the information is not

available for that year.

SECTION 8. Section 41.41(a), Tax Code, as effective until

January 1, 2027, is amended to read as follows:

(a) A property owner is entitled to protest before the

appraisal review board the following actions:

(1) determination of the appraised value of the

owner's property or, in the case of land appraised as provided by

Subchapter C, D, E, or H, Chapter 23, determination of its appraised

or market value;

(2) unequal appraisal of the owner's property;

(3) inclusion of the owner's property on the appraisal

records;

(4) denial to the property owner in whole or in part of

a partial exemption;

(4-a) determination that the owner's property does not

qualify for the circuit breaker limitation on appraised value

provided by Section 23.231;

(5) determination that the owner's land does not

qualify for appraisal as provided by Subchapter C, D, E, or H,

Chapter 23;

(6) identification of the taxing units in which the

owner's property is taxable in the case of the appraisal district's

appraisal roll;

(7) determination that the property owner is the owner

of property;

(8) a determination that a change in use of land

appraised under Subchapter C, [
D, E, or H,
] Chapter 23, has

occurred; or

(9) any other action of the chief appraiser, appraisal

district, or appraisal review board that applies to and adversely

affects the property owner.

SECTION 9. Section 41.41(a), Tax Code, as effective January

1, 2027, is amended to read as follows:

(a) A property owner is entitled to protest before the

appraisal review board the following actions:

(1) determination of the appraised value of the

owner's property or, in the case of land appraised as provided by

Subchapter C, D, E, or H, Chapter 23, determination of its appraised

or market value;

(2) unequal appraisal of the owner's property;

(3) inclusion of the owner's property on the appraisal

records;

(4) denial to the property owner in whole or in part of

a partial exemption;

(5) determination that the owner's land does not

qualify for appraisal as provided by Subchapter C, D, E, or H,

Chapter 23;

(6) identification of the taxing units in which the

owner's property is taxable in the case of the appraisal district's

appraisal roll;

(7) determination that the property owner is the owner

of property;

(8) a determination that a change in use of land

appraised under Subchapter C, [
D, E, or H,
] Chapter 23, has

occurred; or

(9) any other action of the chief appraiser, appraisal

district, or appraisal review board that applies to and adversely

affects the property owner.

SECTION 10. Section 41.44(a), Tax Code, is amended to read

as follows:

(a) Except as provided by Subsections (b), (c), (c-1), and

(c-2), to be entitled to a hearing and determination of a protest,

the property owner initiating the protest must file a written

notice of the protest with the appraisal review board having

authority to hear the matter protested:

(1) not later than May 15 or the 30th day after the

date that notice to the property owner was delivered to the property

owner as provided by Section 25.19, whichever is later;

(2) in the case of a protest of a change in the

appraisal records ordered as provided by Subchapter A of this

chapter or by Chapter 25, not later than the 30th day after the date

notice of the change is delivered to the property owner;

(3) in the case of a determination that a change in the

use of land appraised under Subchapter C, [
D, E, or H,
] Chapter 23,

has occurred, not later than the 30th day after the date the notice

of the determination is delivered to the property owner;

(4) in the case of a determination of eligibility for a

refund under Section 23.1243, not later than the 30th day after the

date the notice of the determination is delivered to the property

owner; or

(5) in the case of a protest of the modification or

denial of an application for an exemption under Section 11.35, or

the determination of an appropriate damage assessment rating for an

item of qualified property under that section, not later than the

30th day after the date the property owner receives the notice

required under Section 11.45(e).

SECTION 11. Section 60.022, Agriculture Code, is amended to

read as follows:

Sec. 60.022. CONTENTS OF PETITION. A petition filed under

Section 60.021 must:

(1) describe the boundaries of the proposed district

by metes and bounds or by lot and block number, if there is a

recorded map or plat and survey of the area;

(2) include a name for the proposed district, which

must include the term "Agricultural Development District";

(3) be signed by the landowners of any land to be

included within the proposed district and provide an acknowledgment

consistent with Section 121.001, Civil Practice and Remedies Code,

that the landowners desire the land to be included in the district;

(4) include the names of at least five persons who are

willing and qualified to serve as temporary directors of the

district;

(5) name each county in which any agricultural

facilities to be owned by the district are to be located;

(6) name each municipality in which any part of the

district is to be located;

(7) state the general nature of the proposed

development and the cost of the development as then estimated by the

petitioners;

(8) state the necessity and feasibility of the

proposed district and whether the district will serve the public

purpose of furthering agricultural interests;

(9) include a pledge that the district will make

payments in lieu of taxes to any school district and county in which

any real property to be owned by the district is located,
in
[
as

follows:

[
(A)
] annual payments to each entity
that are

equal to the amount of taxes imposed on the real property by the

entity in the year of the district's creation; and

[
(B)

a payment to each entity equal to the amount

that would be due under Section 23.55, Tax Code, on the district's

date of creation; and
]

(10) include a pledge that, if the district employs

more than 50 persons, the district will make payments in lieu of

taxes to any school district, in addition to those made under

Subdivision (9), in an amount negotiated between the district and

the school district.

SECTION 12. Section 21.0421(e), Property Code, is amended

to read as follows:

(e) This section does not:

(1) authorize groundwater rights appraised separately

from the real property under this section to be appraised

separately from real property for property tax appraisal purposes;

or

(2) subject real property condemned for the purpose

described by Subsection (a) to an additional tax as provided by

Section 23.46 [
or 23.55
], Tax Code.

SECTION 13. The following provisions of the Tax Code are

repealed:

(1) Section 23.55;

(2) Sections 23.58(c) and (d);

(3) Section 23.76;

(4) Section 23.86;

(5) Section 23.96; and

(6) Section 23.9807.

SECTION 14. The repeal of Sections 23.55, 23.76, 23.86,

23.96, and 23.9807, Tax Code, by this Act does not affect an

additional tax imposed as a result of a change of use of land

appraised under Subchapter D, E, F, G, or H, Chapter 23, Tax Code,

that occurred before the effective date of this Act, and the former

law is continued in effect for purposes of that tax.

SECTION 15. This Act takes effect January 1, 2026.