Bill Text: TX HB3163 | 2023-2024 | 88th Legislature | 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 |
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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 a cash lease[ |
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arrangement [ |
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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. |