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HB 289

Relating to the eligibility of certain land for appraisal for ad valorem tax purposes on the basis of its productivity value and the consequences for those purposes of a change of use or sale of the land.

89th Legislature, 2nd Called Session (2025) Introduced by Andy Hopper

HB 289 adjusts Texas agricultural land tax appraisal eligibility and penalties for use changes or sales, affecting rural property tax rates and local government revenue.

Filed
#agriculture(i0020) #open-spaceland(s0378) #parks&wildlife--general(i0585) #taxation--property-appraisals&appraisaldistricts(i0792) #taxation--property-exemptions(i0793)
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Bill Summary · HB 289

Legislative bill overview

HB 289 modifies Texas property tax law regarding how certain agricultural and open-space land is appraised for ad valorem (property) tax purposes. The bill adjusts eligibility criteria for productivity-value appraisals and establishes new consequences when land use changes or is sold, potentially affecting tax obligations and penalties for landowners.

Why is this important

Property tax appraisals based on "productivity value" allow agricultural and ranching land to be taxed at lower rates reflecting their use value rather than market value—often resulting in significantly lower tax bills for landowners. Changes to eligibility rules and use-change consequences directly impact both landowner tax liability and local government revenue, making this relevant to rural property owners, ranchers, farmers, and county assessor offices across Texas.

Potential points of contention

  • Definition of eligible land: The specifics of what land qualifies for productivity-value appraisal are central to the bill's impact but require detailed examination of proposed eligibility changes
  • Recapture taxes and penalties: How aggressively the bill penalizes landowners who change use (selling for development, for example) affects whether this incentivizes agricultural preservation or creates unexpected tax liability
  • Implementation burden: County assessor offices will bear administrative costs in determining eligibility and tracking use changes; unclear how funding addresses this

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

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