SB1546 - Relating to the appraisal for ad valorem tax purposes of certain land on the basis of the land's productivity value when a portion of the land is taken for a right-of-way through an exercise of the power of eminent domain.

  89R5678 CS-D     By: Perry S.B. No. 1546       A BILL TO BE ENTITLED   AN ACT   relating to the appraisal for ad valorem tax purposes of certain   land on the basis of the land's productivity value when a portion of   the land is taken for a right-of-way through an exercise of the   power of eminent domain.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Subchapter C, Chapter 23, Tax Code, is amended by   adding Section 23.424 to read as follows:           Sec.   23.424.     ELIGIBILITY OF LAND SUBJECT TO RIGHT-OF-WAY.     A designation of land for agricultural use under this subchapter   does not end if:                 (1)     a portion of the land is taken through the exercise   of the power of eminent domain for use as a right-of-way; and                 (2)     the portion of the land not taken through the   exercise of the power of eminent domain, regardless of the size of   that portion, otherwise qualifies for the designation.          SECTION 2.  Section 23.46(e-1), Tax Code, is amended 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.          SECTION 3.  Subchapter D, Chapter 23, Tax Code, is amended by   adding Section 23.527 to read as follows:           Sec.   23.527.     QUALIFICATION OF LAND SUBJECT TO RIGHT-OF-WAY.     The eligibility of land for appraisal under this subchapter does   not end if:                 (1)     a portion of the land is taken through the exercise   of the power of eminent domain for use as a right-of-way; and                 (2)     the portion of the land not taken through the   exercise of the power of eminent domain, regardless of the size of   that portion, otherwise qualifies for appraisal under this   subchapter.          SECTION 4.  The changes in law made by this Act apply only to   the appraisal of land for ad valorem tax purposes for an ad valorem   tax year that begins on or after the effective date of this Act.          SECTION 5.  This Act takes effect January 1, 2026.