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Relating to the qualification of land for appraisal for ad valorem tax purposes as agricultural land and the liability for the additional tax imposed on such land if the use of the land changes as a result of a condemnation.
Passage of the bill would provide that a portion of a parcel of land is not diverted to nonagricultural use because the portion is subject to a right-of-way that is less than 200 feet wide and that was taken by condemnation if the remainder of the land qualifies. As a result, taxable property values could be reduced and the related costs to the Foundation School Fund could be increased through the operation of the school finance formulas.
HB 2043 would clarify in the tax code that a portion of land designated for agriculture use is not diverted to non-agriculture use for property tax purposes just because part of the land is associated with a right of way less than 200 feet wide and was taken by condemnation when the remainder of the parcel of land qualifies for agricultural use.
If taxes are imposed because the land has
been designated to a nonagricultural use as a result of a
condemnation, HB 2043 would make those additional taxes and interest the obligation of the condemning entity rather than the property owner.
Texas Action supports HB 2043 because it promotes property rights and individual liberty. A property owner should not be held responsible for property taxes on a portion of land that was condemned for a right of way when it would otherwise be in use as agricultural land.