The bill amends the Texas Tax Code to clarify the definition and eligibility criteria for "qualified open-space land" for ad valorem tax purposes. It specifies that land must be primarily devoted to agricultural use or ecological laboratory functions for five of the preceding seven years. Notably, the bill introduces new language requiring chief appraisers to distinguish between various agricultural production methods, including organic and sustainable practices. It also expands the definition of "agricultural use" to include additional activities such as producing fruits and vegetables, floriculture, and raising bees, while ensuring that land used for wildlife management can qualify regardless of previous use.

Furthermore, the bill establishes guidelines for uncommon agricultural uses, which will be developed by the comptroller in consultation with relevant stakeholders. These guidelines will help determine the cumulative effect of multiple agricultural uses on a tract of land and set conditions for smaller plots (under 10 acres) used for specific agricultural activities to qualify for appraisal. 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)