Texas 2025 - 89th 2nd C.S.

Texas House Bill HB83

Filed
8/20/25  
Voted on by House
 
Out of Senate Committee
 
Voted on by Senate
 
Governor Action
 
Bill Becomes Law
 

Summary

HB83 repeals several provisions in the Tax Code that impose additional ad valorem taxes when land changes use, particularly for land receiving special appraisal under agricultural, timber, wildlife, and related open-space categories. The bill removes or narrows references to those rollback or deferred taxes in multiple sections, including notice requirements, appraisal procedures, tax bill disclosures, and protest rights, while preserving liability for any additional tax that arose before the bill’s effective date. It also makes conforming changes to the Agriculture Code and Property Code so those laws no longer refer to the repealed rollback-tax provisions. The bill also updates appraisal and taxpayer-notice rules. It requires chief appraisers to continue recording both market value and appraised value for qualified open-space and timber land, clarifies that certain waivers of special appraisal are not treated as a change of use, and adjusts notice and protest procedures for property owners, including owners of land appraised under special-use subchapters. For land owned by individuals age 65 or older, the bill preserves a notice-and-follow-up process before a chief appraiser can determine the land is no longer eligible for special appraisal. In addition, HB83 revises the contents of tax bills and separate statements to reflect the removal of several deferred or additional tax calculations tied to special appraisal categories. It also amends the petition requirements for agricultural development districts, replacing a prior pledge to pay a lump-sum amount tied to Section 23.55 with a narrower pledge to make annual payments in lieu of taxes equal to the taxes imposed in the district’s creation year, plus negotiated payments if the district employs more than 50 people. The bill takes effect January 1, 2026. The overall sentiment from the available record appears neutral to favorable toward simplifying or eliminating the additional tax consequences associated with changes in land use. Because there are no committee transcripts or recorded votes provided, there is no direct evidence of debate, support, or opposition in the materials supplied. The bill’s structure suggests an effort to reduce rollback-tax exposure and streamline appraisal administration, while still preserving preexisting tax liabilities. The main point of potential contention is the fiscal and policy impact on local taxing units, especially school districts and counties that currently rely on additional taxes triggered by a change in use of specially appraised land. Landowners, agricultural interests, timber interests, and owners of open-space or wildlife-managed land would likely view the bill as relief from rollback taxes and related administrative burdens, while taxing authorities may be concerned about lost revenue and reduced leverage to recapture taxes when land leaves special appraisal status.

Impact

HB83 would substantially amend Texas property tax law by repealing the additional ad valorem tax provisions tied to changes in use for several categories of specially appraised land, including open-space, timber, wildlife, and other qualifying land. It also makes conforming changes to notice, appraisal record, tax bill, and protest provisions in the Tax Code, and updates related provisions in the Agriculture Code and Property Code. Existing rollback or additional tax liabilities that arose before the effective date would remain enforceable under prior law.

Sentiment

Based on the bill text alone, the measure appears to be framed as a simplification and taxpayer-relief bill, with a generally favorable or at least reform-oriented tone toward landowners who qualify for special appraisal. No committee discussion or voting history was provided, so there is no recorded evidence of organized opposition or support in the supplied materials. The absence of transcripts and votes limits any stronger conclusion about legislative sentiment.

Contention

The likely contention centers on whether repealing rollback-style additional taxes unfairly benefits landowners who convert land out of agricultural or other special-use status and whether it reduces revenue for school districts, counties, and other local taxing units. Agricultural and timber landowners, older landowners, and property-rights advocates would likely support the bill’s reduction of tax penalties and administrative steps, while local governments and school finance stakeholders may object to the loss of recapture revenue and the weakening of incentives to keep land in qualifying use.

Companion Bills

No companion bills found.

Previously Filed As

TX HB4959

Relating to the eligibility of certain land for appraisal for ad valorem tax purposes on the basis of its productivity value and the consequences for those purposes of a change of use or sale of the land.

TX HB1827

Relating to the repeal of the additional ad valorem taxes imposed as a result of a change of use of certain land.

TX HB1533

Relating to the system for appraising property for ad valorem tax purposes.

TX SB32

Relating to an exemption from ad valorem taxation of a portion of the appraised value of tangible personal property that is held or used for the production of income and a franchise tax credit for the payment of certain related ad valorem taxes.

TX HB2432

Relating to ad valorem taxation.

TX HB275

Relating to the appraisal for ad valorem tax purposes of land subject to a quarantine established by the Texas Animal Health Commission for ticks or screwworms.

TX HB4809

Relating to the authority of an owner of property that qualifies for an exemption as a historic or archeological site to protest the allocation of the appraised value of the property between the land and the improvements to the land.

TX SB2553

Relating to the authority of an owner of property that qualifies for an exemption as a historic or archaeological site to protest the allocation of the appraised value of the property between the land and the improvements to the land.

TX HB3130

Relating to a limitation on increases in the appraised value for ad valorem tax purposes of residential real property leased to an elderly person.

TX HB203

Relating to a limitation on increases in the appraised value for ad valorem tax purposes of certain leased residential real property.

Similar Bills

TX HB4959

Relating to the eligibility of certain land for appraisal for ad valorem tax purposes on the basis of its productivity value and the consequences for those purposes of a change of use or sale of the land.

TX HB5095

Relating to the repeal of the Texas Jobs, Energy, Technology, and Innovation Act.

TX HB178

Relating to the repeal of the Texas Jobs, Energy, Technology, and Innovation Act.

TX HB1827

Relating to the repeal of the additional ad valorem taxes imposed as a result of a change of use of certain land.

PA SB23

In assessments of persons and property, providing for senior property tax freeze.

TX SB1009

Relating to the adoption of the Uniform Easement Relocation Act.