85(R) - 2017
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.
Estimated Two-year Net Impact to General Revenue Related Funds for SB629, As Introduced: an impact of $0 through the biennium ending August 31, 2019.
The bill would make no appropriation but could provide the legal basis for an appropriation of funds to implement the provisions of the bill.
Under current law, during the land appraisal process, if land that was designated for agricultural use is sold or diverted to a non-agricultural use, all additional taxes for the three years preceding its sale or diversion plus any interest at the rate for delinquent taxes is due. If the use of the land that has already been appraised changes, an additional tax is imposed on the land. This amount equals the difference between the taxes imposed for each of the five years preceding the change, and the tax that would have been imposed had the land been taxed on the basis of market value in each of those five years; interest is then added to this amount at a rate of seven percent from those five years. SB 629 would revise this to eliminate all interest amounts in both of the calculations except in cases where the taxes are delinquent.
Vote Recommendation Notes
Texas Action supports this bill. SB 629 upholds our principles of property rights and individual liberty by decreasing the amount of taxes a property owner is penalized with for choosing to use their property in whatever manner they choose.