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HJR 37

Proposing a constitutional amendment repealing the provisions that require that land be devoted to agricultural use for a specified period to be eligible for appraisal for ad valorem tax purposes on the basis of its productivity value and that subject land appraised on that basis to an additional tax when the land is diverted to a purpose other than agricultural use or sold.

89th Legislature, 2nd Called Session (2025) Introduced by Richard Hayes and 1 co-sponsor

Texas constitutional amendment would eliminate agricultural land tax appraisal discounts and rollback taxes, likely increasing property taxes on farmland and accelerating development pressure.

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#agriculture(i0020) #resolutions--constitutionalamendments(i0661) #taxation--property-appraisals&appraisaldistricts(i0792) #taxation--property-assessment&collection(i0798) #taxation--property-exemptions(i0793)
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Bill Summary · HJR 37

Legislative bill overview

HJR 37 proposes a constitutional amendment that would eliminate Texas's "agricultural use" tax appraisal system. Currently, land designated for agricultural use receives favorable property tax assessments based on productivity value rather than market value, but faces rollback taxes if converted to non-agricultural purposes. This amendment would eliminate both the tax benefit and the rollback penalty.

Why is this important

Agricultural land tax exemptions significantly reduce property taxes for landowners, affecting state and local tax revenue and land development patterns. Removing this provision could increase property taxes on farmland substantially, potentially forcing some agricultural operations to sell land to developers or affecting generational farm transfers. This directly impacts rural economies, land preservation incentives, and government budgets across Texas counties.

Potential points of contention

  • Impact on farming viability: Higher property taxes could make smaller or marginal agricultural operations economically unviable, accelerating farmland conversion to urban/commercial uses
  • Revenue redistribution: Local governments gain tax revenue but may face pressure to provide services to newly developed areas, while rural communities lose the agricultural tax base
  • Property rights concerns: Removes a longstanding incentive program some view as fair recognition of agricultural land's lower income-generating capacity, while others see it as unfair preferential treatment

Compiled from official sources — confirm details with the bill’s official record.

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