Proposing a constitutional amendment to authorize the legislature to exempt from ad valorem taxation a portion of the appraised value of certain land that is located in a priority groundwater management area and is not irrigated.

89th Legislature (2025) Introduced by Andy Hopper

Constitutional amendment would let Texas legislature exempt non-irrigated land from property taxes in priority groundwater areas to reduce aquifer depletion.

Referred to Ways & Means

#agriculture(i0020) #irrigation&irrigators(s0170) #resolutions--constitutionalamendments(i0661) #specialdistricts&authorities--groundwaterconservedist.(i0013) #taxation--property-appraisals&appraisaldistricts(i0792) #taxation--property-exemptions(i0793) #water--development(i0875) #water--general(i0885)

Legislative bill overview

HJR 168 proposes a constitutional amendment that would allow the Texas legislature to grant property tax exemptions for non-irrigated land located in priority groundwater management areas. This amendment would modify the Texas Constitution to give lawmakers discretion in determining which portion of such land's value could be exempted from ad valorem (property value-based) taxation.

Why is this important

Texas faces significant groundwater depletion in certain regions, particularly in areas like the Ogallala Aquifer. By exempting non-irrigated land from property taxes in designated groundwater management areas, the state could incentivize landowners to avoid irrigation-intensive agriculture, theoretically reducing groundwater extraction pressure in critical areas. However, this also represents foregone tax revenue that would need to be offset elsewhere or absorbed by other taxpayers.

Potential points of contention

Tax base erosion: Property tax exemptions reduce revenue for local schools, counties, and municipalities that depend on ad valorem taxes, potentially shifting tax burdens to other property owners or requiring service cuts

Inequitable relief: The exemption benefits only landowners in priority groundwater management areas while potentially disadvantaging farmers in other regions facing different water challenges

Effectiveness uncertainty: It's unclear whether tax incentives alone will meaningfully change land use practices, and the amendment gives legislature broad discretion without specifying exemption levels or performance requirements

Definition ambiguity: "Priority groundwater management area" and "portion of appraised value" are not defined in the amendment text, leaving implementation details to future legislative interpretation