HB 1208

83(R) - 2013
Agriculture & Livestock

Vote Recommendation

  • Neutral
  • Positive
  • Neutral
  • Positive
  • Neutral


Tan Parker

Bill Caption

Relating to liability for interest if land appraised for ad valorem tax purposes as agricultural or open-space land is sold or diverted to a different use.

Fiscal Notes

Estimated Two-year Net Impact to General Revenue Related Funds for HB1208, As Introduced: an impact of $0 through the biennium ending August 31, 2015. The bill would make no appropriation but could provide the legal basis for an appropriation of funds to implement the provisions of the bill.

Bill Analysis

Summary: In Texas, land designated for agricultural use is exempt from property taxes. If the purpose of land is altered from agricultural use, the owner of that land must pay the back taxes owed on the land, plus interest. HB 1208 would apply to agricultural land that is being diverted from agricultural use as part of the sale of that land. HB 1208 would remove the requirement that interest be paid on the back taxes.

Analysis: HB 1208 would represent a limiting of government due to the lightening of the tax burden on these individuals. The back taxes, along with the interest, discourage potential buyers from purchasing new property and taking on that additional cost. HB 1208 would help address that concern