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. Specifically, the bill introduces Section 11.39 to the Tax Code, which allows property owners to receive a 35 percent exemption on 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 "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 11.39, indicating that once the exemption is granted, it does not need to be claimed in subsequent years unless the property changes ownership or the owner's qualification 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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