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HB 3935

Relating to an exemption from ad valorem taxation of 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

Texas bill exempts non-irrigated land in priority groundwater areas from property tax to encourage water conservation but may reduce local tax revenues.

Referred to Ways & Means
#agriculture(i0020) #irrigation&irrigators(s0170) #specialdistricts&authorities--groundwaterconservedist.(i0013) #taxation--property-appraisals&appraisaldistricts(i0792) #taxation--property-exemptions(i0793) #water--development(i0875) #water--general(i0885)
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Bill Summary · HB 3935

Legislative bill overview

HB 3935 would exempt a portion of the appraised value of non-irrigated land located in priority groundwater management areas from ad valorem (property) taxation in Texas. The bill targets landowners in designated groundwater zones who are not using irrigation, potentially incentivizing conservation or alternative land management practices in water-stressed regions.

Why is this important

Texas faces increasing water scarcity, particularly in priority groundwater management areas where aquifers are being depleted. This tax exemption could influence land-use decisions in these critical zones by reducing the financial burden on non-irrigating landowners, though it may also reduce local tax revenues that fund schools, counties, and municipalities. The fiscal impact depends on how much land qualifies and how the exemption is valued.

Potential points of contention

  • Revenue impact: Local governments and school districts may lose tax revenue if substantial acreage qualifies, potentially requiring budget adjustments or tax increases elsewhere
  • Fairness concerns: Neighboring irrigated landowners would pay full taxes while non-irrigated neighbors receive exemptions, raising questions about equitable treatment
  • Incentive design: Unclear whether the exemption effectively incentivizes water conservation or simply provides a subsidy to landowners already using non-irrigated practices

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

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