The bill amends the Texas Tax Code to clarify the definition of "qualified open-space land" for ad valorem tax purposes, specifically regarding agricultural use. It introduces new provisions that require chief appraisers to differentiate between various agricultural production methods, including organic and sustainable practices. Additionally, the bill expands the definition of "agricultural use" to include activities such as producing fruits and vegetables, floriculture, and raising bees, while also emphasizing that land used for wildlife management can qualify for appraisal regardless of its previous use.

Furthermore, the bill establishes guidelines for assessing uncommon agricultural uses, which will be developed by the comptroller in consultation with relevant stakeholders. These guidelines will address the cumulative effects of multiple agricultural uses on a tract of land and set criteria for smaller parcels (under 10 acres) used for specific agricultural activities. The comptroller is tasked with distributing these guidelines to appraisal districts by September 1, 2026, and the provisions of the bill will take effect for tax years beginning on or after January 1, 2027.

Statutes affected:
Introduced: Tax Code 23.51 (Tax Code 23)