Bill Text: TX HB3163 | 2023-2024 | 88th Legislature | Introduced

Texas House Bill 3163

Introduced

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 1-0)

Status: (Introduced - Dead) 2023-03-15 - Referred to Ways & Means [HB3163 Detail]

Download: Texas-2023-HB3163-Introduced.html

	88R4412 RDS-D

	By: Lozano	H.B. No. 3163



	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 a 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.
	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.