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 | ||
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| 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 | ||
