S.B. No. 725

AN ACT

relating to the qualification of land for appraisal for ad valorem
tax purposes as agricultural land and the liability for the
additional tax imposed on such land if the use of the land changes
as a result of a condemnation.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 23.46, Tax Code, is amended by adding
Subsections (e-1) and (g) to read as follows:
(e-1) A portion of a parcel of land is not diverted to
nonagricultural use for purposes of Subsection (c) because the
portion is subject to a right-of-way that is less than 200 feet wide
and that was taken by condemnation if the remainder of the parcel of
land qualifies for appraisal under this subchapter.
(g) If the additional taxes are due because the land has
been diverted to a nonagricultural use as a result of a
condemnation, the additional taxes and interest imposed by this
section are the personal obligation of the condemning entity and
not the property owner from whom the property was taken.
SECTION 2. (a) Section 23.46(e-1), Tax Code, as added by
this Act, applies only to the appraisal of land for ad valorem tax
purposes for a tax year that begins on or after the effective date
of this Act.
(b) Section 23.46(g), Tax Code, as added by this Act,
applies only to a change of use of land that occurs on or after the
effective date of this Act.
SECTION 3. This Act takes effect September 1, 2021.

______________________________ ______________________________
President of the Senate Speaker of the House

I hereby certify that S.B. No. 725 passed the Senate on
April 14, 2021, by the following vote: Yeas 31, Nays 0.

______________________________
Secretary of the Senate

I hereby certify that S.B. No. 725 passed the House on
May 4, 2021, by the following vote: Yeas 145, Nays 0, two present
not voting.

______________________________
Chief Clerk of the House

Approved:

______________________________
Date

______________________________
Governor