H.B. No. 99 proposes an exemption from ad valorem taxation for a portion of the appraised value of certain land located in a priority groundwater management area that is not irrigated. The bill introduces a new section, Section 11.38, to the Tax Code, which defines a "priority groundwater management area" and specifies that landowners are entitled to a 35 percent exemption on the appraised value of tracts of land that meet specific criteria, including being at least one-half acre in size and not subject to appraisal under certain other subchapters.

Additionally, the bill amends Section 11.43(c) of the Tax Code to include the new exemption under Section 11.38, allowing it to be automatically applied in subsequent years without the need for reapplication, unless ownership changes or the qualification for the exemption changes. The act is set to take effect on January 1, 2026, contingent upon the approval of a related constitutional amendment by voters. If the amendment is not approved, the act will have no effect.

Statutes affected:
Introduced: Tax Code 11.43 (Tax Code 11)