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 a, the official text

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