The bill, S.B. No. 2168, amends the Texas Tax Code to clarify the eligibility criteria for land to be appraised as qualified open-space land for ad valorem tax purposes. It defines "qualified open-space land" to include land primarily used for agricultural purposes or as an ecological laboratory by educational institutions for at least five of the preceding seven years. Notably, the bill introduces new provisions requiring chief appraisers to differentiate between various agricultural production methods, including organic and sustainable practices. It also expands the definition of "agricultural use" to encompass a broader range of 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.

Additionally, 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 conditions under which multiple agricultural uses of a tract of land meet the required intensity for appraisal. The comptroller is tasked with providing educational resources to assist chief appraisers in applying these guidelines effectively. The new provisions will take effect on September 1, 2025, and will apply to tax years beginning on or after January 1, 2027.

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