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HB 546

Relating to the eligibility of land taken by condemnation for appraisal for ad valorem tax purposes as qualified open-space land.

89th Legislature (2025) Introduced by Cecil Bell

Allows land seized through eminent domain to qualify for reduced open-space property tax appraisals, potentially lowering tax assessments on condemned properties.

Withdrawn from schedule
#agriculture(i0020) #condemnation(s0063) #open-spaceland(s0378) #propertyinterests--realproperty(i0595) #taxation--property-appraisals&appraisaldistricts(i0792) #taxation--property-exemptions(i0793)
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WeVote Research Nonpartisan
Bill Summary · HB 546

Legislative bill overview

HB 546 modifies Texas property tax law to allow land acquired through eminent domain (condemnation) to qualify for open-space land appraisals, which typically receive preferential tax treatment. Currently, such condemned land may not retain or obtain this favorable classification. The bill would expand eligibility criteria for this tax designation to include properties taken by the government.

Why is this important

Open-space land appraisals in Texas result in significantly lower property tax assessments than standard market-value appraisals, benefiting landowners with agricultural, wildlife, or timber properties. This change could affect tax revenue in counties where government agencies acquire land through condemnation and then maintain it for public purposes, while potentially creating incentives or protections for property owners facing eminent domain proceedings.

Potential points of contention

  • Tax base erosion: Local governments and school districts may lose property tax revenue if condemned lands receive reduced open-space appraisals instead of full market-value assessments
  • Defining "open-space" after condemnation: Unclear standards for what constitutes qualifying open-space use when government entities control the land, potentially allowing broad interpretations
  • Equity concerns: The benefit may disproportionately favor larger landowners or properties in specific regions where condemnation is common, raising fairness questions about preferential treatment

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

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