HB1244 - Relating to the eligibility of land to continue to be appraised for ad valorem tax purposes as qualified open-space land following a transfer to a person who uses the land in materially the same way as the former owner and to late applications for such appraisal filed by the new owner of the land.

      H.B. No. 1244         AN ACT   relating to the eligibility of land to continue to be appraised for   ad valorem tax purposes as qualified open-space land following a   transfer to a person who uses the land in materially the same way as   the former owner and to late applications for such appraisal filed   by the new owner of the land.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Section 23.54(e-1), Tax Code, is amended to read   as follows:          (e-1)  For purposes of Subsection (e), the ownership of [ the ]   land that was appraised under this subchapter in the preceding tax   year is not considered to have changed if :                 (1)  the ownership of the land is transferred from the   former owner to the surviving spouse of the former owner ; or                 (2)     after the ownership of the land is transferred   from the former owner to the new owner:                       (A)     the new owner uses the land in materially the   same way as the former owner used the land during the preceding tax   year; and                       (B)     the use described by Paragraph (A) is   overseen or conducted by the same individuals who oversaw or   conducted that use during the preceding tax year .          SECTION 2.  Section 23.541, Tax Code, is amended by adding   Subsection (a-2) and amending Subsection (b) to read as follows:           (a-2)     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 new owner uses the land in materially the same   way as the former owner used the land during the preceding tax year;                 (3)     the use described by Subdivision (2) is overseen   or conducted by the same individuals who oversaw or conducted that   use during the preceding tax year; and                 (4)     the application is filed not later than the later   of:                       (A)     the delinquency date for the taxes on the   land for the year for which the application is filed; or                       (B)     the first anniversary of the date the   ownership of the land was transferred from the former owner to the   new owner.          (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) or   (a-2) .          SECTION 3.  This Act takes effect January 1, 2026.       ______________________________ ______________________________      President of the Senate Speaker of the House                   I certify that H.B. No. 1244 was passed by the House on April   29, 2025, by the following vote:  Yeas 145, Nays 0, 2 present, not   voting.     ______________________________   Chief Clerk of the House                 I certify that H.B. No. 1244 was passed by the Senate on May   9, 2025, by the following vote:  Yeas 31, Nays 0.     ______________________________   Secretary of the Senate       APPROVED:  _____________________                      Date                           _____________________                    Governor