Paxton Open-Space Bill Widens The Farm Tax Break, Starting 2027

The text as introduced · 891 words

89R4552 CS-D

By: Paxton
S.B. No. 2168

A BILL TO BE ENTITLED

AN ACT

relating to the eligibility of land for appraisal for ad valorem tax

purposes as qualified open-space land.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Sections 23.51(1) and (2), Tax Code, are amended

to read as follows:

(1) "Qualified open-space land" means land that is

currently devoted principally to agricultural use to the degree of

intensity generally accepted in the area and that has been devoted

principally to agricultural use or to production of timber or

forest products for five of the preceding seven years or land that

is used principally as an ecological laboratory by a public or

private college or university and that has been used principally in

that manner by a college or university for five of the preceding

seven years. A chief appraiser shall distinguish between the

degree of intensity required for various agricultural production

methods, including organic, sustainable, pastured poultry,

rotational grazing, and other uncommon production methods or

systems. Qualified open-space land includes all appurtenances to

the land. For the purposes of this subdivision, appurtenances to

the land means private roads, dams, reservoirs, water wells,

canals, ditches, terraces, and other reshapings of the soil,

fences, and riparian water rights. Notwithstanding the other

provisions of this subdivision, land that is currently devoted

principally to wildlife management as defined by Subdivision (7)(B)

or (C) to the degree of intensity generally accepted in the area

qualifies for appraisal as qualified open-space land under this

subchapter regardless of the manner in which the land was used in

any preceding year.

(2) "Agricultural use" includes but is not limited to

the following activities: cultivating the soil, producing crops

for human food, animal feed, or planting seed or for the production

of fibers; producing fruits and vegetables; floriculture,

viticulture, and horticulture; raising or keeping livestock;

raising or keeping exotic animals for the production of human food

or of fiber, leather, pelts, or other tangible products having a

commercial value; planting cover crops or leaving land idle for the

purpose of participating in a governmental program, provided the

land is not used for residential purposes or a purpose inconsistent

with agricultural use; and planting cover crops or leaving land

idle in conjunction with normal crop or livestock rotation

procedure. The term also includes the use of land to produce or

harvest logs and posts for the use in constructing or repairing

fences, pens, barns, or other agricultural improvements on adjacent

qualified open-space land having the same owner and devoted to a

different agricultural use. The term also includes the use of land

for wildlife management. The term also includes the use of land to

raise or keep bees for pollination or for the production of human

food or other tangible products having a commercial value, provided

that the land used is not less than 5 or more than 20 acres.

SECTION 2. Subchapter D, Chapter 23, Tax Code, is amended by

adding Section 23.5215 to read as follows:

Sec. 23.5215. GUIDELINES FOR UNCOMMON AGRICULTURAL USES.

(a) The comptroller, in consultation with the Texas A&M AgriLife

Extension Service, individuals selected by the comptroller who

represent appraisal districts, and individuals selected by the

comptroller who represent affected producers, shall develop

guidelines for determining under what conditions the cumulative

effect of multiple agricultural uses of a tract of land meets the

degree of intensity generally accepted in the area.

(b) The comptroller, in consultation with the Texas A&M

AgriLife Extension Service, individuals selected by the

comptroller who represent appraisal districts, and individuals

selected by the comptroller who represent small-scale producers,

shall develop guidelines for determining under what conditions land

under 10 acres in size used for the production of fruits,

vegetables, poultry, hogs, sheep, or goats qualifies for appraisal

under this subchapter. The guidelines must provide that land under

10 acres in size that qualifies for appraisal under this subchapter

solely on the basis of the guidelines developed under this section

may not subsequently qualify under Section 23.51(7) for appraisal

under this subchapter if the owner changes the use of the land to

wildlife management.

(c) The guidelines developed under this section may include

recordkeeping requirements consistent with normal practices of

agricultural operations.

(d) The comptroller in developing guidelines under this

section may consider the following factors:

(1) the financial investment of a producer in an

agricultural use of a tract of land;

(2) the degree of active management of a producer in

the agricultural use of a tract of land;

(3) the percentage of a tract of land used by a

producer for agricultural uses; and

(4) any other factor the comptroller considers

appropriate.

(e) The comptroller, in cooperation with appraisal

districts, shall provide educational resources to chief appraisers

to assist with the appraisal of land using the guidelines developed

under this section and of land using an uncommon production method,

such as organic production, sustainable production, and pastured

poultry.

SECTION 3. Not later than September 1, 2026, the

comptroller shall distribute the guidelines required by Section

23.5215, Tax Code, as added by this Act, to each appraisal district.

SECTION 4. This Act applies only to the appraisal of land

for ad valorem tax purposes for a tax year that begins on or after

January 1, 2027.

SECTION 5. This Act takes effect September 1, 2025.