Bill Text: TX SB25 | 2021 | 87th Legislature 3rd Special Session | Introduced

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

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced - Dead) 2021-09-08 - Filed [SB25 Detail]

Download: Texas-2021-SB25-Introduced.html
 
 
  By: Hall S.B. No. 25
 
 
 
   
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to the repeal of the additional ad valorem taxes imposed as
  a result of a sale or change of use of certain land.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
  ARTICLE 1. REPEAL OF ADDITIONAL TAX PROVISIONS IN 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.  Subsection (a), Section 23.46, Tax Code, is
  transferred to Section 23.41, Tax Code, and redesignated as
  Subsection (c), Section 23.41, Tax Code.
         SECTION 1.12.  The following provisions of the Tax Code are
  repealed:
               (1)  Section 23.20(g);
               (2)  the heading to Section 23.46;
               (3)  Sections 23.46(b), (c), (d), (e), and (f);
               (4)  Sections 23.46(e-1) and (g), as added by S.B.
  No. 725, Acts of the 87th Legislature, Regular Session, 2021, and
  effective September 1, 2021;
               (5)  Sections 23.47(c) and (d);
               (6)  Section 23.55;
               (7)  Sections 23.58(c) and (d);
               (8)  Section 23.76;
               (9)  Section 23.86;
               (10)  Section 23.96; and
               (11)  Section 23.9807.
         SECTION 1.13.  The repeal of Sections 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
  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 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 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 2.13.  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.
  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, 1st
  Called 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.

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