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HB 4959

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 (2025) Introduced by Richard Hayes and 2 co-sponsors

HB 4959 modifies Texas rules for agricultural land tax appraisals based on productivity value and penalties for changing land use or selling such property.

Referred to s/c on Property Tax Appraisals by Speaker
#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 4959

Legislative bill overview

HB 4959 modifies Texas property tax law regarding how certain land is appraised for ad valorem (property) tax purposes. Specifically, it adjusts eligibility rules for land to be taxed based on "productivity value" (agricultural/productive use value) rather than market value, and establishes consequences when such land changes use or is sold.

Why is this important

Property tax appraisals directly affect what landowners pay in taxes. Agricultural land typically receives preferential tax treatment when appraised by productivity rather than market value—especially significant in Texas where large tracts of land exist. Changes to eligibility rules or transition penalties when land use changes can substantially impact both rural landowners and tax revenue for counties and school districts.

Potential points of contention

  • Agricultural exemption scope: Determining which land qualifies for productivity-based appraisal is contentious—broadening eligibility reduces tax revenue while narrowing it may harm farmers/ranchers
  • Development pressure and penalties: Rules penalizing land conversion from agricultural to other uses affect property rights and development economics, creating tension between land preservation and landowner flexibility
  • Tax base erosion: Changes to appraisal methodology impact school funding and county budgets, potentially requiring tax rate increases elsewhere to maintain services

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

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