The bill amends various sections of the Texas Tax Code to clarify the eligibility criteria for land appraisal based on productivity value for ad valorem tax purposes, particularly focusing on agricultural and open-space land. Key changes include the repeal of specific provisions related to eligibility and tax consequences for land designated for agricultural use, including the removal of references to Subchapters C and D that previously governed certain appraisal processes. The new language specifies that landowners are entitled to have their land designated for agricultural use if they own it and intend to use it for agriculture as a business venture for profit. Additionally, the bill updates the definition of "qualified open-space land" to eliminate the requirement that land must have been used for agricultural purposes for five of the preceding seven years, thereby allowing for greater flexibility in qualifying land.

The bill also introduces new standards for wildlife management and conservation practices that can qualify land for appraisal as open-space land. Significant deletions include the repeal of Section 23.55, which addressed tax implications related to changes in land use, and the removal of provisions requiring land to be devoted to agricultural use for a specified period to qualify for productivity value appraisal. Furthermore, the bill mandates that notices regarding property appraisals be sent by certified mail and clarifies that a waiver of special appraisal does not constitute a change of use for tax purposes. The effective date of the bill is set for January 1, 2027, contingent upon voter approval of a related constitutional amendment.

Statutes affected:
Introduced: Tax Code 23.20, Tax Code 23.42, Tax Code 23.51, Tax Code 23.52, Tax Code 23.524, Tax Code 23.551, Tax Code 31.01, Tax Code 41.44, Agriculture Code 60.022, Property Code 21.0421, The following provisions of the Tax Code 23.46 (Agriculture Code 60, The following provisions of the Tax Code 23, Tax Code 41, Property Code 21, Tax Code 23, Tax Code 31)