H.B. No. 282 proposes an exemption from ad valorem taxation for a portion of the appraised value of certain land that is located in a priority groundwater management area and is not irrigated. The bill introduces a new section, Section 11.39, to the Tax Code, which defines a "priority groundwater management area" and specifies that land eligible for the exemption must be at least one-half acre in size, not include any portion underlying a structure, and not be subject to appraisal under specific subchapters of Chapter 23. The exemption allows for a 35 percent reduction in the appraised value for qualifying landowners.

Additionally, the bill amends Section 11.43(c) of the Tax Code to include the new exemption under Section 11.39, indicating that once the exemption is granted, it does not need to be claimed in subsequent years unless the ownership changes or the qualification for the exemption changes. The bill is contingent upon the approval of a constitutional amendment proposed by the 89th Legislature, which would authorize such exemptions. If the amendment is not approved, the bill will have no effect. The proposed effective date for the act is January 1, 2027.

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