The bill amends the Texas Tax Code to clarify the eligibility criteria for land appraisal based on productivity value for ad valorem tax purposes. It repeals 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 appraisal processes. The new language allows individuals to designate their land for agricultural use if they own it and intend to use it for profit. Additionally, the bill modifies definitions and requirements for wildlife management and qualified open-space land, ensuring that land used for wildlife management can qualify for appraisal under the updated standards.

Significant deletions include the repeal of Section 23.55, which addressed additional taxes due to changes in land use, and the removal of provisions requiring land to be used for agricultural purposes for a specified period to qualify for productivity value appraisal. The bill also mandates that notices related to 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. Furthermore, it updates the definition of "qualified open-space land" to eliminate the five-of-seven-year agricultural use requirement, thereby providing more flexibility for land qualification. The bill is set to take effect on January 1, 2027, pending 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 (Tax Code 23, Tax Code 31, The following provisions of the Tax Code 23, Property Code 21, Tax Code 41, Agriculture Code 60)