reglab/statecodes huggingface dataset:
2023 Texas Statutes › Tax Code › Title 1 - Property Tax Code › Subtitle D - Appraisal and Assessment › Chapter 23 - Appraisal Methods and Procedures › Subchapter D. Appraisal of Agricultural Land › Section 23.522. Temporary Cessation of Agricultural Use During Drought

Sec. 23.522.  TEMPORARY CESSATION OF AGRICULTURAL USE DURING DROUGHT.  The eligibility of land for appraisal under this subchapter does not end because the land ceases to be devoted principally to agricultural use to the degree of intensity generally accepted in the area if:
(1)  a drought declared by the governor creates an agricultural necessity to extend the normal time the land remains out of agricultural production; and
(2)  the owner of the land intends that the use of the land in that manner and to that degree of intensity be resumed when the declared drought ceases.
Added by Acts 2009, 81st Leg., R.S., Ch. 1211 (S.B. 771), Sec. 3, eff. January 1, 2010.
2023 Texas Statutes › Tax Code › Title 1 - Property Tax Code › Subtitle D - Appraisal and Assessment › Chapter 23 - Appraisal Methods and Procedures › Subchapter D. Appraisal of Agricultural Land › Section 23.523. Temporary Cessation of Agricultural Use When Property Owner Deployed or Stationed Outside State as Member of Armed Services

Sec. 23.523.  TEMPORARY CESSATION OF AGRICULTURAL USE WHEN PROPERTY OWNER DEPLOYED OR STATIONED OUTSIDE STATE AS MEMBER OF ARMED SERVICES.  (a)  The eligibility of land for appraisal under this subchapter does not end because the land ceases to be devoted principally to agricultural use to the degree of intensity generally accepted in the area if the owner of the land:
(1)  is a member of the armed services of the United States who is deployed or stationed outside this state; and
(2)  intends that the use of the land in that manner and to that degree of intensity be resumed not later than the 180th day after the date the owner ceases to be deployed or stationed outside this state.
(b)  The owner of land to which this section applies must notify the appraisal office in writing not later than the 30th day after the date the owner is deployed or stationed outside this state that the owner:
(1)  will be or has been deployed or stationed outside this state; and
(2)  intends to use the land in the manner, to the degree, and within the time described by Subsection (a)(2).
Added by Acts 2017, 85th Leg., R.S., Ch. 83 (H.B. 777), Sec. 1, eff. May 23, 2017.
2023 Texas Statutes › Tax Code › Title 1 - Property Tax Code › Subtitle D - Appraisal and Assessment › Chapter 23 - Appraisal Methods and Procedures › Subchapter D. Appraisal of Agricultural Land › Section 23.524. Temporary Cessation of Agricultural Use to Manage the Spread of Certain Pests

Sec. 23.524.  TEMPORARY CESSATION OF AGRICULTURAL USE TO MANAGE THE SPREAD OF CERTAIN PESTS.  (a)  In this section, "commissioner," "corporation," "infested," "pest," and "pest management zone" have the meanings assigned by Section 80.003, Agriculture Code.
(b)  The eligibility of land for appraisal under this subchapter does not end because the land ceases to be devoted principally to agricultural use to the degree of intensity generally accepted in the area for the period prescribed by Subsection (c) if:
(1)  the land is:
(A)  located in a pest management zone; and
(B)  appraised under this subchapter primarily on the basis of the production of citrus in the tax year in which the agreement described by this subsection is executed;
(2)  the owner of the land:
(A)  has executed an agreement to destroy, remove, or treat all the citrus trees located on the land that are or could become infested with pests with:
(i)  the corporation;
(ii)  the commissioner; or
(iii)  the United States Department of Agriculture; and
(B)  complies with the requirements of Subsection (d); and
(3)  the cessation of use is caused by the destruction, removal, or treatment of the citrus trees located on the land under the terms of the agreement described by this subsection.
(c)  Subsection (b) applies to land eligible for appraisal under this subchapter only during the period that begins on the date the agreement described by that subsection regarding the land is executed and that ends on the fifth anniversary of that date.
(d)  The owner of land to which this section applies must, not later than the 30th day after the date the owner executes an agreement described by Subsection (b):
(1)  notify in writing the chief appraiser for each appraisal district in which the land is located that:
(A)  the agreement has been executed; and
(B)  the owner intends to destroy, remove, or treat the citrus trees located on the land under the terms of the agreement; and
(2)  submit a copy of the agreement to each chief appraiser with the notification.
(e)  For the purposes of this subchapter, a change of use of the land subject to this section is considered to have occurred on the day the period prescribed by Subsection (c) begins if the owner has not fully complied with the terms of the agreement described by Subsection (b) on the date the agreement ends.
Added by Acts 2017, 85th Leg., R.S., Ch. 44 (S.B. 1459), Sec. 1, eff. May 19, 2017.
2023 Texas Statutes › Tax Code › Title 1 - Property Tax Code › Subtitle D - Appraisal and Assessment › Chapter 23 - Appraisal Methods and Procedures › Subchapter D. Appraisal of Agricultural Land › Section 23.525. Oil and Gas Operations on Land

Sec. 23.525.  OIL AND GAS OPERATIONS ON LAND.  The eligibility of land for appraisal under this subchapter does not end because a lessee under an oil and gas lease begins conducting oil and gas operations over which the Railroad Commission of Texas has jurisdiction on the land if the portion of the land on which oil and gas operations are not being conducted otherwise continues to qualify for appraisal under this subchapter.
Added by Acts 2017, 85th Leg., R.S., Ch. 365 (H.B. 3198), Sec. 1, eff. September 1, 2017.
Redesignated from Tax Code, Section 23.524 by Acts 2019, 86th Leg., R.S., Ch. 467 (H.B. 4170), Sec. 21.001(43), eff. September 1, 2019.
2023 Texas Statutes › Tax Code › Title 1 - Property Tax Code › Subtitle D - Appraisal and Assessment › Chapter 23 - Appraisal Methods and Procedures › Subchapter D. Appraisal of Agricultural Land › Section 23.526. Temporary Cessation of Agricultural Use Due to Quarantine for Ticks

Sec. 23.526.  TEMPORARY CESSATION OF AGRICULTURAL USE DUE TO QUARANTINE FOR TICKS.  (a)  The eligibility of land for appraisal under this subchapter does not end because the land ceases to be devoted principally to agricultural use to the degree of intensity generally accepted in the area for the period prescribed by Subsection (b) if the land:
(1)  is subject to a temporary quarantine established at any time during the tax year by the Texas Animal Health Commission for the purpose of regulating the handling of livestock and eradicating ticks or exposure to ticks under Chapter 167, Agriculture Code;
(2)  is appraised under this subchapter primarily on the basis of the livestock located in the area subject to quarantine in the tax year; and
(3)  otherwise continues to qualify for appraisal under this subchapter.
(b)  Subsection (a) applies to land eligible for appraisal under this subchapter only during the period that begins on the date the land is designated as a tick eradication area and that ends on the date the land is released from quarantine by the Texas Animal Health Commission.
(c)  The owner of land to which this section applies must, not later than the 30th day after the date the land is designated as a tick eradication area, notify in writing the chief appraiser for each appraisal district in which the land is located that the land is located in a tick eradication area.
(d)  The owner of land to which this section applies must, not later than the 30th day after the date the land is released from quarantine by the Texas Animal Health Commission, notify in writing the chief appraiser for each appraisal district in which the land is located that the land has been released from quarantine by the Texas Animal Health Commission.
Added by Acts 2019, 86th Leg., R.S., Ch. 101 (H.B. 3348), Sec. 2, eff. May 21, 2019.
2023 Texas Statutes › Tax Code › Title 1 - Property Tax Code › Subtitle D - Appraisal and Assessment › Chapter 23 - Appraisal Methods and Procedures › Subchapter D. Appraisal of Agricultural Land › Section 23.53. Capitalization Rate

Sec. 23.53.  CAPITALIZATION RATE.  The capitalization rate to be used in determining the appraised value of qualified open-space land as provided by this subchapter is 10 percent or the interest rate specified by the Farm Credit Bank of Texas or its successor on December 31 of the preceding year plus 2-1/2 percentage points, whichever percentage is greater.
Acts 1979, 66th Leg., p. 2259, ch. 841, Sec. 1, eff. Jan. 1, 1982.  Amended by Acts 1995, 74th Leg., ch. 579, Sec. 4, eff. Jan. 1, 1996.
2023 Texas Statutes › Tax Code › Title 1 - Property Tax Code › Subtitle D - Appraisal and Assessment › Chapter 23 - Appraisal Methods and Procedures › Subchapter D. Appraisal of Agricultural Land › Section 23.541. Late Application for Appraisal as Agricultural Land

Sec. 23.541.  LATE APPLICATION FOR APPRAISAL AS AGRICULTURAL LAND.  (a)  The chief appraiser shall accept and approve or deny an application for appraisal under this subchapter after the deadline for filing it has passed if it is filed before approval of the appraisal records by the appraisal review board.
(a-1)  Notwithstanding Subsection (a), the chief appraiser shall accept and approve or deny an application for appraisal under this subchapter after the deadline for filing the application has passed if:
(1)  the land that is the subject of the application was appraised under this subchapter in the preceding tax year;
(2)  the ownership of the land changed as a result of the death of an owner of the land during the preceding tax year; and
(3)  the application is filed not later than the delinquency date for the taxes on the land for the year for which the application is filed by:
(A)  the surviving spouse or a surviving child of the decedent;
(B)  the executor or administrator of the estate of the decedent; or
(C)  a fiduciary acting on behalf of the surviving spouse or a surviving child of the decedent.
(b)  If appraisal under this subchapter is approved when the application is filed late, the owner is liable for a penalty of 10 percent of the difference between the amount of tax imposed on the property and the amount that would be imposed if the property were taxed at market value.  The penalty prescribed by this subsection does not apply to a late application filed under Subsection (a-1).
(c)  The chief appraiser shall make an entry on the appraisal records indicating the person's liability for the penalty and shall deliver written notice of imposition of the penalty, explaining the reason for its imposition, to the person.
(d)  The tax assessor for a taxing unit that taxes land based on an appraisal under this subchapter after a late application shall add the amount of the penalty to the owner's tax bill, and the tax collector for the unit shall collect the penalty at the time and in the manner he collects the tax.  The amount of the penalty constitutes a lien against the property against which the penalty is imposed, as if it were a tax, and accrues penalty and interest in the same manner as a delinquent tax.
Added by Acts 1981, 67th Leg., 1st C.S., p. 144, ch. 13, Sec. 70, eff. Jan. 1, 1982.
Amended by:
Acts 2023, 88th Leg., R.S., Ch. 155 (S.B. 1191), Sec. 1, eff. May 23, 2023.
2023 Texas Statutes › Tax Code › Title 1 - Property Tax Code › Subtitle D - Appraisal and Assessment › Chapter 23 - Appraisal Methods and Procedures › Subchapter D. Appraisal of Agricultural Land › Section 23.551. Additional Notice to Certain Landowners

Sec. 23.551.  ADDITIONAL NOTICE TO CERTAIN LANDOWNERS.  (a)  If land appraised as provided by this subchapter is owned by an individual 65 years of age or older, before making a determination that a change in use of the land has occurred, the chief appraiser shall deliver a written notice to the owner stating that the chief appraiser believes a change in use of the land may have occurred.
(b)  The notice must include a form on which the owner may indicate that the land remains eligible to be appraised as provided by this subchapter and a self-addressed postage prepaid envelope with instructions for returning the form to the chief appraiser.
(c)  The chief appraiser shall consider the owner's response on the form in determining whether the land remains eligible for appraisal under this subchapter.
(d)  If the chief appraiser does not receive a response on or before the 60th day after the date the notice is mailed, the chief appraiser must make a reasonable effort to locate the owner and determine whether the land remains eligible to be appraised as provided by this subchapter before determining that a change in use of the land has occurred.
(e)  For purposes of this section, sending an additional notice to the owner immediately after the expiration of the 60-day period prescribed by Subsection (d) by first class mail in an envelope on which is written, in all capital letters, "RETURN SERVICE REQUESTED," or another appropriate statement directing the United States Postal Service to return the notice if it is not deliverable as addressed, or providing the additional notice in another manner that the chief appraiser determines is appropriate, constitutes a reasonable effort on the part of the chief appraiser.
Added by Acts 2015, 84th Leg., R.S., Ch. 352 (H.B. 1464), Sec. 6, eff. September 1, 2015.
2023 Texas Statutes › Tax Code › Title 1 - Property Tax Code › Subtitle D - Appraisal and Assessment › Chapter 23 - Appraisal Methods and Procedures › Subchapter D. Appraisal of Agricultural Land › Section 23.56. Land Ineligible for Appraisal as Open-Space Land

Sec. 23.56.  LAND INELIGIBLE FOR APPRAISAL AS OPEN-SPACE LAND.  Land is not eligible for appraisal as provided by this subchapter if:
(1)  the land is located inside the corporate limits of an incorporated city or town, unless:
(A)  the city or town is not providing the land with governmental and proprietary services substantially equivalent in standard and scope to those services it provides in other parts of the city or town with similar topography, land utilization, and population density;
(B)  the land has been devoted principally to agricultural use continuously for the preceding five years; or
(C)  the land:
(i)  has been devoted principally to agricultural use or to production of timber or forest products continuously for the preceding five years; and
(ii)  is used for wildlife management;
(2)  the land is owned by an individual who is a nonresident alien or by a foreign government if that individual or government is required by federal law or by rule adopted pursuant to federal law to register his ownership or acquisition of that property; or
(3)  the land is owned by a corporation, partnership, trust, or other legal entity if the entity is required by federal law or by rule adopted pursuant to federal law to register its ownership or acquisition of that land and a nonresident alien or a foreign government or any combination of nonresident aliens and foreign governments own a majority interest in the entity.
Acts 1979, 66th Leg., p. 2260, ch. 841, Sec. 1, eff. Jan. 1, 1982.
Amended by:
Acts 2009, 81st Leg., R.S., Ch. 495 (S.B. 801), Sec. 3, eff. January 1, 2010.
2023 Texas Statutes › Tax Code › Title 1 - Property Tax Code › Subtitle D - Appraisal and Assessment › Chapter 23 - Appraisal Methods and Procedures › Subchapter D. Appraisal of Agricultural Land › Section 23.57. Action on Applications

Sec. 23.57.  ACTION ON APPLICATIONS.  (a)  The chief appraiser shall determine separately each applicant's right to have the applicant's land appraised under this subchapter.  After considering the application and all relevant information, the chief appraiser shall, as soon as practicable but not later than the 90th day after the later of the date the applicant's land is first eligible for appraisal under this subchapter or the date the applicant provides to the chief appraiser the information necessary for the chief appraiser to determine the applicant's right to have the applicant's land appraised under this subchapter, as the law and facts warrant:
(1)  approve the application and allow appraisal under this subchapter;
(2)  disapprove the application and request additional information from the applicant in support of the claim; or
(3)  deny the application.
(b)  If the chief appraiser requires additional information from an applicant, the chief appraiser shall, as soon as practicable but not later than the 30th day after the date the application is filed with the chief appraiser, deliver a written notice to the applicant specifying the additional information the applicant must provide to the chief appraiser before the chief appraiser can determine the applicant's right to have the applicant's land appraised under this subchapter.  The applicant must furnish the information not later than the 30th day after the date of the request or the application is denied.  However, for good cause shown the chief appraiser may extend the deadline for furnishing the information by written order for a single period not to exceed 15 days.
(c)  The chief appraiser shall determine the validity of each application for appraisal under this subchapter filed with him before he submits the appraisal records for review and determination of protests as provided by Chapter 41 of this code.
(d)  If the chief appraiser denies an application, the chief appraiser shall deliver a written notice of the denial to the applicant not later than the fifth day after the date the chief appraiser makes the determination.  The notice must state and fully explain each reason the chief appraiser denied the application.  The notice must include a brief explanation of the procedures for protesting the denial.
Added by Acts 1981, 67th Leg., 1st C.S., p. 145, ch. 13, Sec. 72, eff. Jan. 1, 1982.
Amended by:
Acts 2021, 87th Leg., R.S., Ch. 533 (S.B. 63), Sec. 9, eff. September 1, 2021.
2023 Texas Statutes › Tax Code › Title 1 - Property Tax Code › Subtitle D - Appraisal and Assessment › Chapter 23 - Appraisal Methods and Procedures › Subchapter D. Appraisal of Agricultural Land › Section 23.58. Loan Secured by Lien on Open-Space Land

Sec. 23.58.  LOAN SECURED BY LIEN ON OPEN-SPACE LAND.  (a)  A lender may not require as a condition to granting or amending the terms of a loan secured by a lien in favor of the lender on land appraised according to this subchapter that the borrower waive the right to the appraisal or agree not to apply for or receive the appraisal.
(b)  A provision in an instrument pertaining to a loan secured by a lien in favor of the lender on land appraised according to this subchapter is void to the extent that the provision attempts to require the borrower to waive the right to the appraisal or to prohibit the borrower from applying for or receiving the appraisal.
(c)  A provision in an instrument pertaining to a loan secured by a lien in favor of the lender on land appraised according to this subchapter that requires the borrower to make a payment to protect the lender from loss because of the imposition of additional taxes under Section 23.55 is void unless the provision:
(1)  requires the borrower to pay into an escrow account established by the lender an amount equal to the additional taxes that would be due under Section 23.55 if a change of use occurred on January 1 of the year in which the loan is granted or amended;
(2)  requires the escrow account to bear interest to be credited to the account monthly;
(3)  permits the lender to apply money in the escrow account to the payment of a bill for additional taxes under Section 23.55 before the loan is paid and requires the lender to refund the balance remaining in the escrow account after the bill is paid to the borrower; and
(4)  requires the lender to refund the money in the escrow account to the borrower on the payment of the loan.
(d)  On the request of the borrower or the borrower's representative, the assessor for each taxing unit shall compute the additional taxes that would be due that taxing unit under Section 23.55 if a change of use occurred on January 1 of the year in which the loan is granted or amended.  The assessor may charge a reasonable fee not to exceed the actual cost of making the computation.
(e)  In this section, "lender" has the meaning assigned by Section 23.47(e).
Added by Acts 1995, 74th Leg., ch. 82, Sec. 2, eff. May 11, 1995.
Amended by:
Acts 2021, 87th Leg., R.S., Ch. 726 (H.B. 3833), Sec. 3, eff. June 15, 2021.
2023 Texas Statutes › Tax Code › Title 1 - Property Tax Code › Subtitle D - Appraisal and Assessment › Chapter 23 - Appraisal Methods and Procedures › Subchapter D. Appraisal of Agricultural Land › Section 23.59. Appraisal of Open-Space Land That Is Converted to Timber Production

Sec. 23.59.  APPRAISAL OF OPEN-SPACE LAND THAT IS CONVERTED TO TIMBER PRODUCTION.  (a)  If land that has been appraised under this subchapter for at least five preceding years is converted to production of timber after September 1, 1997, the owner may elect to have the land continue to be appraised under this subchapter for 15 years after the date of the conversion, so long as the land qualifies for appraisal as timber land under Subchapter E.  In that event, the land is deemed to be the same category of land under this subchapter as it was immediately before conversion to timber production.
(b)  The election must be made by a new application filed as provided by Section 23.54 and remains in effect for 15 years or until a change in use of the land occurs.
(c)  This section applies to the appraisal of land converted to timber production only until the end of the tax year in which the 15th anniversary of the date of the conversion occurs.  In the 16th and subsequent years, the land shall be appraised as timber land as provided by Subchapter E, so long as it qualifies as timber land under Subchapter E.
Added by Acts 1997, 75th Leg., ch. 765, Sec. 1, eff. Sept. 1, 1997.
2023 Texas Statutes › Tax Code › Title 1 - Property Tax Code › Subtitle D - Appraisal and Assessment › Chapter 23 - Appraisal Methods and Procedures › Subchapter E. Appraisal of Timber Land › Section 23.71. Definitions

Sec. 23.71.  DEFINITIONS.  In this subchapter:
(1)  "Category of the land" means the value classification of land for timber production, based on soil type, soil capability, general topography, weather, location, and other pertinent factors, as determined by competent governmental sources.
(2)  "Net to land" means the average net income that would have been earned by a category of land over the preceding five years by a person using ordinary prudence in the management of the land and the timber produced on the land.  The net income for each year is determined by multiplying the land's potential average annual growth, expressed in tons, by the stumpage value, expressed in price per ton, of large pine sawtimber, small pine sawtimber, pine pulpwood, hardwood sawtimber, hardwood pulpwood, and any other significant timber product, taking into consideration the three forest types and the four different soil types, as determined by using information for the East Texas timber-growing region as a whole from the U.S. Forest Service, the Natural Resources Conservation Service of the United States Department of Agriculture, the Texas Forest Service, and colleges and universities within this state, and by subtracting from the product reasonable management costs and other reasonable expenses directly attributable to the production of the timber that a prudent manager of the land and timber, seeking to maximize return, would incur in the management of the land and timber.  Stumpage prices shall be determined by using information collected for all types of timber sales, including cutting contract and gatewood sales.
Acts 1979, 66th Leg., p. 2261, ch. 841, Sec. 1, eff. Jan. 1, 1982.  Amended by Acts 2003, 78th Leg., ch. 968, Sec. 1, eff. Jan. 1, 2004.
2023 Texas Statutes › Tax Code › Title 1 - Property Tax Code › Subtitle D - Appraisal and Assessment › Chapter 23 - Appraisal Methods and Procedures › Subchapter E. Appraisal of Timber Land › Section 23.72. Qualification for Productivity Appraisal

Sec. 23.72.  QUALIFICATION FOR PRODUCTIVITY APPRAISAL.  (a)  Land qualifies for appraisal as provided by this subchapter if it is currently and actively devoted principally to production of timber or forest products to the degree of intensity generally accepted in the area with intent to produce income and has been devoted principally to production of timber or forest products or to agricultural use that would qualify the land for appraisal under Subchapter C or D for five of the preceding seven years.
(b)  In determining whether land is currently and actively devoted principally to the production of timber or forest products to the degree of intensity generally accepted in an area, a chief appraiser may not consider the purpose for which a portion of a parcel of land is used if the portion is:
(1)  used for the production of timber or forest products, including a road, right-of-way, buffer area, or firebreak; or
(2)  subject to a right-of-way that was taken through the exercise of the power of eminent domain.
(c)  For the purpose of the appraisal of land under this subchapter, a portion of a parcel of land described by Subsection (b) is considered land that qualifies for appraisal under this subchapter if the remainder of the parcel of land qualifies for appraisal under this subchapter.
Acts 1979, 66th Leg., p. 2261, ch. 841, Sec. 1, eff. Jan. 1, 1982.  Amended by Acts 1987, 70th Leg., ch. 780, Sec. 3, eff. Jan. 1, 1988.
Amended by:
Acts 2019, 86th Leg., R.S., Ch. 43 (H.B. 1409), Sec. 1, eff. September 1, 2019.
2023 Texas Statutes › Tax Code › Title 1 - Property Tax Code › Subtitle D - Appraisal and Assessment › Chapter 23 - Appraisal Methods and Procedures › Subchapter E. Appraisal of Timber Land › Section 23.73. Appraisal of Qualified Timber Land

Sec. 23.73.  APPRAISAL OF QUALIFIED TIMBER LAND.  (a)  The appraised value of qualified timber land is determined on the basis of the category of the land, using accepted income capitalization methods applied to average net to land.  The appraised value so determined may not exceed the market value of the land as determined by other appraisal methods.
(b)  The comptroller by rule shall develop and distribute to each appraisal office appraisal manuals setting forth this method of appraising qualified timber land, and each appraisal office shall use the appraisal manuals in appraising qualified timber land.  The comptroller by rule shall develop and the appraisal office shall enforce procedures to verify that land meets the conditions contained in Section 23.72.  The rules, before taking effect, must be approved by the comptroller with the review and counsel of the Texas A&M Forest Service.
(c)  For the purposes of Section 23.76 of this code, the chief appraiser also shall determine the market value of qualified timber land and shall record both the market value and the appraised value in the appraisal records.
(d)  The appraisal of minerals or subsurface rights to minerals is not within the provisions of this subchapter.
Acts 1979, 66th Leg., p. 2261, ch. 841, Sec. 1, eff. Jan. 1, 1982.  Amended by Acts 1981, 67th Leg. 1st C.S., p. 145, ch. 13, Sec. 73, eff. Jan. 1, 1982;  Acts 1991, 72nd Leg., 2nd C.S., ch. 6, Sec. 26, eff. Sept. 1, 1991.
Amended by:
Acts 2017, 85th Leg., R.S., Ch. 23 (S.B. 594), Sec. 2, eff. January 1, 2018.
Acts 2017, 85th Leg., R.S., Ch. 553 (S.B. 526), Sec. 10(c), eff. September 1, 2017.
2023 Texas Statutes › Tax Code › Title 1 - Property Tax Code › Subtitle D - Appraisal and Assessment › Chapter 23 - Appraisal Methods and Procedures › Subchapter E. Appraisal of Timber Land › Section 23.74. Capitalization Rate

Sec. 23.74.  CAPITALIZATION RATE.  (a)  The capitalization rate to be used in determining the appraised value of qualified timber land as provided by this subchapter is the greater of:
(1)  the interest rate specified by the Farm Credit Bank of Texas or its successor on December 31 of the preceding year plus 2-1/2 percentage points;  or
(2)  the capitalization rate used in determining the appraised value of qualified timber land as provided by this subchapter for the preceding tax year.
(b)  Notwithstanding Subsection (a):
(1)  in the first tax year in which the capitalization rate determined under that subsection equals or exceeds 10 percent, the capitalization rate for that tax year is the rate determined under Subsection (a)(1);  and
(2)  for each tax year following the tax year described by Subdivision (1), the capitalization rate is the average of the rate determined under Subsection (a)(1) for the current tax year and the capitalization rate used for each of the four tax years preceding the current tax year other than a tax year preceding the tax year described by Subdivision (1).
Acts 1979, 66th Leg., p. 2262, ch. 841, Sec. 1, eff. Jan. 1, 1982.  Amended by Acts 1995, 74th Leg., ch. 579, Sec. 5, eff. Jan. 1, 1996;  Acts 2003, 78th Leg., ch. 968, Sec. 2, eff. Jan. 1, 2004.
2023 Texas Statutes › Tax Code › Title 1 - Property Tax Code › Subtitle D - Appraisal and Assessment › Chapter 23 - Appraisal Methods and Procedures › Subchapter E. Appraisal of Timber Land › Section 23.751. Late Application for Appraisal as Timber Land

Sec. 23.751.  LATE APPLICATION FOR APPRAISAL AS TIMBER LAND.  (a)  The chief appraiser shall accept and approve or deny an application for appraisal under this subchapter after the deadline for filing it has passed if it is filed before approval of the appraisal records by the appraisal review board.
(b)  If appraisal under this subchapter is approved when the application is filed late, the owner is liable for a penalty of 10 percent of the difference between the amount of tax imposed on the property and the amount that would be imposed if the property were taxed at market value.
(c)  The chief appraiser shall make an entry on the appraisal records indicating the person's liability for the penalty and shall deliver written notice of imposition of the penalty, explaining the reason for its imposition, to the person.
(d)  The tax assessor for a taxing unit that taxes land based on an appraisal under this subchapter after a late application shall add the amount of the penalty to the owner's tax bill, and the tax collector for the unit shall collect the penalty at the time and in the manner he collects the tax.  The amount of the penalty constitutes a lien against the property against which the penalty is imposed, as if it were a tax, and accrues penalty and interest in the same manner as a delinquent tax.
Added by Acts 1981, 67th Leg., 1st C.S., p. 147, ch. 13, Sec. 75, eff. Jan. 1, 1982.
2023 Texas Statutes › Tax Code › Title 1 - Property Tax Code › Subtitle D - Appraisal and Assessment › Chapter 23 - Appraisal Methods and Procedures › Subchapter E. Appraisal of Timber Land › Section 23.765. Oil and Gas Operations on Land

Sec. 23.765.  OIL AND GAS OPERATIONS ON LAND.  The eligibility of land for appraisal under this subchapter does not end because a lessee under an oil and gas lease begins conducting oil and gas operations over which the Railroad Commission of Texas has jurisdiction on the land if the portion of the land on which oil and gas operations are not being conducted otherwise continues to qualify for appraisal under this subchapter.
Added by Acts 2019, 86th Leg., R.S., Ch. 43 (H.B. 1409), Sec. 2, eff. September 1, 2019.
2023 Texas Statutes › Tax Code › Title 1 - Property Tax Code › Subtitle D - Appraisal and Assessment › Chapter 23 - Appraisal Methods and Procedures › Subchapter E. Appraisal of Timber Land › Section 23.77. Land Ineligible for Appraisal as Timber Land

Sec. 23.77.  LAND INELIGIBLE FOR APPRAISAL AS TIMBER LAND.  Land is not eligible for appraisal as provided by this subchapter if:
(1)  the land is located inside the corporate limits of an incorporated city or town, unless:
(A)  the city or town is not providing the land with governmental and proprietary services substantially equivalent in standard and scope to those services it provides in other parts of the city or town with similar topography, land utilization, and population density;  or
(B)  the land has been devoted principally to production of timber or forest products continuously for the preceding five years;
(2)  the land is owned by an individual who is a nonresident alien or by a foreign government if that individual or government is required by federal law or by rule adopted pursuant to federal law to register his ownership or acquisition of that property;  or
(3)  the land is owned by a corporation, partnership, trust, or other legal entity if the entity is required by federal law or by rule adopted pursuant to federal law to register its ownership or acquisition of that land and a nonresident alien or a foreign government or any combination of nonresident aliens and foreign governments own a majority interest in the entity.
Acts 1979, 66th Leg., p. 2263, ch. 841, Sec. 1, eff. Jan. 1, 1982.
2023 Texas Statutes › Tax Code › Title 1 - Property Tax Code › Subtitle D - Appraisal and Assessment › Chapter 23 - Appraisal Methods and Procedures › Subchapter E. Appraisal of Timber Land › Section 23.78. Minimum Taxable Value of Timber Land

Sec. 23.78.  MINIMUM TAXABLE VALUE OF TIMBER LAND.  The taxable value of qualified timber land appraised as provided by this subchapter may not be less than the appraised value of that land for the taxing unit in the 1978 tax year, except that the taxable value used for any tax year may not exceed the market value of the land as determined by other generally accepted appraisal methods.  If the appraised value of timber land determined as provided by this subchapter is less than a taxing unit's appraised value of that land in 1978, the assessor for the unit shall substitute the 1978 appraised value for that land on the unit's appraisal roll.
Acts 1979, 66th Leg., p. 2263, ch. 841, Sec. 1, eff. Jan. 1, 1982.  Amended by Acts 1981, 67th Leg., 1st C.S., p. 148, ch. 13, Sec. 77, eff. Jan. 1, 1982.
2023 Texas Statutes › Tax Code › Title 1 - Property Tax Code › Subtitle D - Appraisal and Assessment › Chapter 23 - Appraisal Methods and Procedures › Subchapter E. Appraisal of Timber Land › Section 23.79. Action on Applications

Sec. 23.79.  ACTION ON APPLICATIONS.  (a)  The chief appraiser shall determine separately each applicant's right to have the applicant's land appraised under this subchapter.  After considering the application and all relevant information, the chief appraiser shall, as soon as practicable but not later than the 90th day after the later of the date the applicant's land is first eligible for appraisal under this subchapter or the date the applicant provides to the chief appraiser the information necessary for the chief appraiser to determine the applicant's right to have the applicant's land appraised under this subchapter, as the law and facts warrant:
(1)  approve the application and allow appraisal under this subchapter;
(2)  disapprove the application and request additional information from the applicant in support of the claim; or
(3)  deny the application.
(b)  If the chief appraiser requires additional information from an applicant, the chief appraiser shall, as soon as practicable but not later than the 30th day after the date the application is filed with the chief appraiser, deliver a written notice to the applicant specifying the additional information the applicant must provide to the chief appraiser before the chief appraiser can determine the applicant's right to have the applicant's land appraised under this subchapter.  The applicant must furnish the information not later than the 30th day after the date of the request or the application is denied.  However, for good cause shown the chief appraiser may extend the deadline for furnishing the information by written order for a single period not to exceed 15 days.
(c)  The chief appraiser shall determine the validity of each application for appraisal under this subchapter filed with him before he submits the appraisal records for review and determination of protests as provided by Chapter 41 of this code.
(d)  If the chief appraiser denies an application, the chief appraiser shall deliver a written notice of the denial to the applicant not later than the fifth day after the date the chief appraiser makes the determination.  The notice must state and fully explain each reason the chief appraiser denied the application.  The notice must include a brief explanation of the procedures for protesting the denial.
Added by Acts 1981, 67th Leg., 1st C.S., p. 148, ch. 13, Sec. 78, eff. Jan. 1, 1982.
Amended by:
Acts 2021, 87th Leg., R.S., Ch. 533 (S.B. 63), Sec. 10, eff. September 1, 2021.
2023 Texas Statutes › Tax Code › Title 1 - Property Tax Code › Subtitle D - Appraisal and Assessment › Chapter 23 - Appraisal Methods and Procedures › Subchapter F. Appraisal of Recreational, Park, and Scenic Land › Section 23.81. Definitions

Sec. 23.81.  DEFINITIONS.  In this subchapter:
(1)  "Recreational, park, or scenic use" means use for individual or group sporting activities, for park or camping activities, for development of historical, archaeological, or scientific sites, or for the conservation and preservation of scenic areas.
(2)  "Deed restriction" means a valid and enforceable provision that limits the use of land and that is included in a written instrument filed and recorded in the deed records of the county in which the land is located.
Added by Acts 1981, 67th Leg., 1st C.S., p. 149, ch. 13, Sec. 79, eff. Jan. 1, 1982.
2023 Texas Statutes › Tax Code › Title 1 - Property Tax Code › Subtitle D - Appraisal and Assessment › Chapter 23 - Appraisal Methods and Procedures › Subchapter F. Appraisal of Recreational, Park, and Scenic Land › Section 23.82. Voluntary Restrictions

Sec. 23.82.  VOLUNTARY RESTRICTIONS.  (a)  The owner of a fee simple estate in land of at least five acres may limit the use of the land to recreational, park, or scenic use by filing with the county clerk of the county in which the land is located a written instrument executed in the form and manner of a deed.
(b)  The instrument must describe the land, name each owner of the land, and provide that the restricted land may be used only for recreational, park, or scenic uses during the term of the deed restriction.  The term of the deed restriction must be for at least 10 years, and the length of the term must be stated in the instrument.
(c)  The county attorney of the county in which the restricted land is located or any person owning or having an interest in the restricted land may enforce a deed restriction that complies with the requirements of this section.
Added by Acts 1981, 67th Leg., 1st C.S., p. 149, ch. 13, Sec. 79, eff. Jan. 1, 1982.
2023 Texas Statutes › Tax Code › Title 1 - Property Tax Code › Subtitle D - Appraisal and Assessment › Chapter 23 - Appraisal Methods and Procedures › Subchapter F. Appraisal of Recreational, Park, and Scenic Land › Section 23.83. Appraisal of Restricted Land

Sec. 23.83.  APPRAISAL OF RESTRICTED LAND.  (a)  A person is entitled to have land he owns appraised under this subchapter if, on January 1:
(1)  the land is restricted as provided by this subchapter;
(2)  the land is used in a way that does not result in accrual of distributable profits, realization of private gain resulting from payment of compensation in excess of a reasonable allowance for salary or other compensation for services rendered, or realization of any other form of private gain;
(3)  the land has been devoted exclusively to recreational, park, or scenic uses for the preceding year;  and
(4)  he is using and intends to use the land exclusively for those purposes in the current year.
(b)  The chief appraiser may not consider any factor other than one relating to the value of the land as restricted.  Sales of comparable land not restricted as provided by this subchapter may not be used to determine the value of restricted land.
(c)  Improvements other than appurtenances to the land and the mineral estate are appraised separately at market value.  Riparian water rights, private roads, dams, reservoirs, water wells, and canals, ditches, terraces, and similar reshapings of or additions to the soil are appurtenances to the land and the effect of each on the value of the land for recreational, park, or scenic uses shall be considered in appraising the land.
(d)  If land is appraised under this subchapter for a year, the chief appraiser shall determine at the end of that year whether the land was used exclusively for recreational, park, or scenic uses.  If the land was not used exclusively for recreational, park, or scenic uses, the assessor for each taxing unit shall impose an additional tax equal to the difference in the amount of tax imposed and the amount that would have been imposed for that year if the land had not been restricted to recreational, park, or scenic uses.  The assessor shall include the amount of additional tax plus interest on the next bill for taxes on the land.
(e)  The comptroller shall promulgate rules specifying the methods to apply and the procedures to use in appraising land under this subchapter.
Added by Acts 1981, 67th Leg., 1st C.S., p. 149, ch. 13, Sec. 79, eff. Jan. 1, 1982.  Amended by Acts 1991, 72nd Leg., 2nd C.S., ch. 6, Sec. 28, eff. Sept. 1, 1991.
2023 Texas Statutes › Tax Code › Title 1 - Property Tax Code › Subtitle D - Appraisal and Assessment › Chapter 23 - Appraisal Methods and Procedures › Subchapter F. Appraisal of Recreational, Park, and Scenic Land › Section 23.84. Application

Sec. 23.84.  APPLICATION.  (a)  A person claiming the right to have his land appraised under this subchapter must apply for the right the first year he claims it.  Application for appraisal under this chapter is made by filing a sworn application form with the chief appraiser for the appraisal district in which the land is located.
(b)  A claimant must deliver a completed application form to the chief appraiser before May 1 and must furnish the information required by the form.  For good cause shown the chief appraiser may extend the deadline for filing the application by written order for a single period not to exceed 60 days.
(c)  If a claimant fails to timely file a completed application form, the land is ineligible for appraisal as provided by this subchapter for that year.  Once an application is filed and appraisal under this subchapter is allowed, the land is eligible for appraisal under this subchapter during the term of the deed restriction without a new application unless the ownership of the land changes or its eligibility under this subchapter ends.  However, the chief appraiser, if he has good cause to believe the land's eligibility under this subchapter has ended, may require a person allowed appraisal under this subchapter in a prior year to file a new application to confirm that the land is currently eligible under this subchapter by delivering a written notice that a new application is required, accompanied by the application form, to the person who filed the application that was previously allowed.
(d)  A person whose land is allowed appraisal under this subchapter shall notify the appraisal office in writing before May 1 after eligibility of the land under this subchapter ends.
(e)  If the chief appraiser discovers that appraisal under this subchapter has been erroneously allowed in any one of the five preceding years, the chief appraiser shall add the difference between the appraised value of the land under this subchapter and the market value of the land if it had not been restricted to recreational, park, or scenic uses to the appraisal roll as provided by Section 25.21 of this code for other property that escapes taxation.
(f)  The comptroller in prescribing the contents of the application forms shall ensure that each form requires a claimant to furnish the information necessary to determine the validity of the claim and that the form requires the claimant to state that the land for which he claims appraisal under this subchapter will be used exclusively for recreational, park, or scenic uses in the current year.
Added by Acts 1981, 67th Leg., 1st C.S., p. 149, ch. 13, Sec. 79, eff. Jan. 1, 1982.  Amended by Acts 1991, 72nd Leg., 2nd C.S., ch. 6, Sec. 29, eff. Sept. 1, 1991;  Acts 1995, 74th Leg., ch. 579, Sec. 7, eff. Jan. 1, 1996.
2023 Texas Statutes › Tax Code › Title 1 - Property Tax Code › Subtitle D - Appraisal and Assessment › Chapter 23 - Appraisal Methods and Procedures › Subchapter F. Appraisal of Recreational, Park, and Scenic Land › Section 23.85. Action on Application

Sec. 23.85.  ACTION ON APPLICATION.  (a)  The chief appraiser shall determine individually each claimant's right to appraisal under this subchapter.  After considering the application and all relevant information, the chief appraiser shall, as soon as practicable but not later than the 90th day after the later of the date the claimant is first eligible for appraisal under this subchapter or the date the claimant provides to the chief appraiser the information necessary for the chief appraiser to determine the claimant's right to appraisal under this subchapter, as the law and facts warrant:
(1)  approve the application and allow appraisal under this subchapter;
(2)  disapprove the application and request additional information from the claimant in support of the claim; or
(3)  deny the application.
(b)  If the chief appraiser requires additional information from a claimant, the chief appraiser shall, as soon as practicable but not later than the 30th day after the date the application is filed with the chief appraiser, deliver a written notice to the claimant specifying the additional information the claimant must provide to the chief appraiser before the chief appraiser can determine the claimant's right to appraisal under this subchapter.  The claimant must furnish the information not later than the 30th day after the date of the request or the application is denied.  However, for good cause shown the chief appraiser may extend the deadline for furnishing additional information by written order for a single period not to exceed 15 days.
(c)  The chief appraiser shall determine the validity of each application for appraisal under this subchapter filed with him before he submits the appraisal records for review and determination of protests as provided by Chapter 41 of this code.
(d)  If the chief appraiser denies an application, the chief appraiser shall deliver a written notice of the denial to the claimant not later than the fifth day after the date of denial.  The notice must state and fully explain each reason the chief appraiser denied the application.  The notice must include a brief explanation of the procedures for protesting the denial.
Added by Acts 1981, 67th Leg., 1st C.S., p. 149, ch. 13, Sec. 79, eff. Jan. 1, 1982.
Amended by:
Acts 2021, 87th Leg., R.S., Ch. 533 (S.B. 63), Sec. 11, eff. September 1, 2021.