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Relating to liability for the additional tax imposed on land
appraised for ad valorem tax purposes as agricultural land if the
use of the land changes as a result of a condemnation.
No fiscal implication to the State is anticipated.
SB 555 would require that, in an eminent domain taking in which land being condemned will change from agricultural use to non-agricultural use, the condemning entity rather than the landowner whose land is condemned will be responsible for paying the associated rollback taxes. The bill stipulates that portions of agricultural land taken for a right-of-way that is less than 200 feet wide are not diverted to non-agricultural use.
Texas Action recommends supporting SB 555 because it protects property owners from increased taxes when property changes from agricultural to non-agricultural due to condemnation. This is a positive step for private property rights because it protects a landowner who had little to no choice in the matter.