If qualifying land changes use, an additional tax may be imposed, with special rules for notice, billing, lien attachment, and exceptions.
Sec. 23.9807. CHANGE OF USE OF LAND. (a) If the use of land that has been appraised as provided by this subchapter changes to a use that qualifies the land for appraisal under Subchapter E, an additional tax is imposed on the land equal to the difference between: (1) the taxes imposed on the land for each of the three years preceding the year in which the change of use occurs that the land was appraised as provided by this subchapter; and (2) the taxes that would have been imposed had the land been appraised under Subchapter E in each of those years. (b) If the use of land that has been appraised as provided by this subchapter changes to a use that does not qualify the land for appraisal under Subchapter E or under this subchapter, an additional tax is imposed on the land equal to the difference between: (1) the taxes imposed on the land for each of the three years preceding the year in which the change of use occurs that the land was appraised as provided by this subchapter; and (2) the taxes that would have been imposed had the land been taxed on the basis of market value in each of those years. (c) A tax lien attaches to the land on the date the change of use occurs to secure payment of the additional tax imposed by this section and any penalties and interest incurred if the tax becomes delinquent. The lien exists in favor of all taxing units for which the additional tax is imposed. (d) The additional tax imposed by this section does not apply to a year for which the tax has already been imposed. (e) If the change of use applies to only part of a parcel that has been appraised as provided by this subchapter, the additional tax applies only to that part of the parcel. (f) A determination that a change in use of the land has occurred is made by the chief appraiser. The chief appraiser shall deliver a notice of the determination to the owner of the land as soon as possible after making the determination and shall include in the notice an explanation of the owner's right to protest the determination. If the owner does not file a timely protest or if the final determination of the protest is that the additional taxes are due, the assessor for each taxing unit shall prepare and deliver a bill for the additional taxes as soon as practicable after the change of use occurs. The taxes are due and become delinquent and incur penalties and interest as provided by law for ad valorem taxes imposed by the taxing unit if not paid before the next February 1 that is at least 20 days after the date the bill is delivered to the owner of the land. (g) The harvesting of timber from the land before the expiration of the period provided by Section 23.9802(c) constitutes a change of use of the land for purposes of this section. (h) The sanction provided by Subsection (a) or (b) does not apply if the change of use occurs as a result of a: (1) sale for right-of-way; (2) condemnation; or (3) change in law. Added by Acts 1999, 76th Leg., ch. 631, Sec. 5, eff. Jan. 1, 2000. Amended by: Acts 2021, 87th Leg., R.S., Ch. 726 (H.B. 3833), Sec. 7, eff. June 15, 2021.