H.B. No. 99 proposes an exemption from ad valorem taxation for a portion of the appraised value of certain non-irrigated land located in a priority groundwater management area. Specifically, the bill introduces Section 11.38 to the Tax Code, which allows property owners to exempt 35 percent of the appraised value of land that meets specific criteria: it must be at least one-half acre in size (excluding any area under a structure), not irrigated, and not subject to appraisal under certain other subchapters of Chapter 23. The definition of a "priority groundwater management area" is aligned with the existing Water Code.

Additionally, the bill amends Section 11.43(c) of the Tax Code to include the new exemption under Section 11.38, ensuring that once granted, the exemption does not need to be claimed in subsequent years 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)