Bill Text: TX HB4148 | 2021-2022 | 87th Legislature | Introduced

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Bill Title: Relating to the repeal of the additional ad valorem taxes imposed as a result of certain changes in the use of certain land.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced - Dead) 2021-03-29 - Referred to Ways & Means [HB4148 Detail]

Download: Texas-2021-HB4148-Introduced.html

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87R11463 LHC-D
By: Sanford H.B. No. 4148

A BILL TO BE ENTITLED
AN ACT
relating to the repeal of the additional ad valorem taxes imposed as
a result of certain changes in the use of certain land.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
ARTICLE 1. REPEAL OF ADDITIONAL TAX PROVISIONS IN SECTION 11.201
AND SUBCHAPTERS C, D, E, F, G, AND H, CHAPTER 23, TAX CODE
SECTION 1.01. 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 1.02. 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 1.03. 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 1.04. 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 1.05. 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 1.06. Section 31.01(c), Tax Code, is 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 of the
land [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) state the assessment ratio for the taxing unit;
(5) state the type and amount of any partial exemption
applicable to the property, indicating whether it applies to
appraised or assessed value;
(6) state the total tax rate for the taxing unit;
(7) state the amount of tax due, the due date, and the
delinquency date;
(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;
(9) state the rates of penalty and interest imposed
for delinquent payment of the tax;
(10) include the name and telephone number of the
assessor for the taxing unit and, if different, of the collector for
the taxing unit;
(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
(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.
SECTION 1.07. Section 41.41(a), Tax Code, 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; or
(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 1.08. Sections 41.44(a) and (c), Tax Code, are
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
(4) [(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).
(c) A property owner who files notice of a protest
authorized by Section 41.411 is entitled to a hearing and
determination of the protest if the property owner files the notice
prior to the date the taxes on the property to which the notice
applies become delinquent. [An owner of land who files a notice of
protest under Subsection (a)(3) is entitled to a hearing and
determination of the protest without regard to whether the
appraisal records are approved.]
SECTION 1.09. 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 1.10. 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 1.11. The following provisions of the Tax Code are
repealed:
(1) Section 11.201;
(2) Section 23.20(g);
(3) Section 23.46;
(4) Sections 23.47(c) and (d);
(5) Section 23.55;
(6) Sections 23.58(c) and (d);
(7) Section 23.76;
(8) Section 23.86;
(9) Section 23.96; and
(10) Section 23.9807.
SECTION 1.12. The repeal of Sections 11.201, 23.46, 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 sale or change of
use of land exempted under Section 11.20 or appraised under
Subchapter C, 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.
ARTICLE 2. REPEAL OF ADDITIONAL TAX PROVISIONS IN SECTION 11.201
AND SUBCHAPTERS D, E, F, G, AND H, CHAPTER 23, TAX CODE
SECTION 2.01. 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 2.02. 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 2.03. 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 2.04. 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 2.05. 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 2.06. 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 2.07. 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 2.08. Section 41.41(a), Tax Code, 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 2.09. 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 2.10. 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 2.11. 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 2.12. The following provisions of the Tax Code are
repealed:
(1) Section 11.201;
(2) Section 23.55;
(3) Sections 23.58(c) and (d);
(4) Section 23.76;
(5) Section 23.86;
(6) Section 23.96; and
(7) Section 23.9807.
SECTION 2.13. The repeal of Sections 11.201, 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 sale or change of use of land
exempted under Section 11.20 or 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.
ARTICLE 3. EFFECTIVE DATE
SECTION 3.01. (a) Except as otherwise provided by this
section, this Act takes effect January 1, 2022.
(b) Article 1 of this Act takes effect only if the
constitutional amendment proposed by the 87th Legislature, Regular
Session, 2021, repealing the provision that subjects land
designated for agricultural use to an additional tax when the land
is diverted to a purpose other than agricultural use or sold is
approved by the voters. If that amendment is not approved by the
voters, Article 1 of this Act has no effect.
(c) Article 2 of this Act takes effect only if Article 1 of
this Act does not take effect. If Article 1 of this Act takes
effect, Article 2 of this Act has no effect.