WeVote
Log In

Bill

Bill

SB 1546

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.

89th Legislature (2025) Introduced by Charles Perry

Bill protects agricultural landowners from tax reassessments at market value when eminent domain takes portions of their property, allowing productivity-based valuations to remain on remaining land.

Referred to Local Government
#agriculture(i0020) #propertyinterests--eminentdomain(i0615) #taxation--property-appraisals&appraisaldistricts(i0792) #taxation--property-exemptions(i0793)
0
WeVote Research Nonpartisan
Bill Summary · SB 1546

Legislative bill overview

SB 1546 modifies how Texas appraises agricultural land for property tax purposes when a portion is seized through eminent domain for rights-of-way (like highways or utilities). The bill allows landowners to maintain productivity-based valuations on remaining land even after a portion is taken, rather than potentially triggering a reassessment at higher market values.

Why is this important

Landowners whose property is partially condemned for infrastructure projects could face significant tax increases on their remaining acreage if the land is reappraised at market value rather than agricultural productivity value. This bill protects agricultural properties from sudden tax spikes when government entities acquire portions of their land, which is especially relevant in rural Texas where farming operations span large tracts.

Potential points of contention

  • Property tax base reduction: Municipalities and school districts relying on ad valorem tax revenue may see reduced collections if large agricultural tracts maintain lower productivity valuations rather than market-based assessments
  • Definition boundaries: The bill's scope regarding what constitutes "certain land" and qualifying productivity values may create ambiguity in appraisal practices across different counties
  • Fairness between landowners: Non-agricultural property owners whose land is taken may question why agricultural operators receive preferential tax treatment after partial condemnation

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

Sign in to ask a question.