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HB 1244

Relating to the eligibility of land to continue to be appraised for ad valorem tax purposes as qualified open-space land following a transfer to a person who uses the land in materially the same way as the former owner and to late applications for such appraisal filed by the new owner of the land.

89th Legislature (2025) Introduced by Paul Bettencourt and 3 co-sponsors

Texas law now allows transferred open-space land to keep reduced tax appraisal if new owner uses it similarly, with late-application options available.

Effective on 1/1/26
#agriculture(i0020) #open-spaceland(s0378) #taxation--property-appraisals&appraisaldistricts(i0792) #taxation--property-exemptions(i0793)
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Bill Summary · HB 1244

Legislative bill overview

HB 1244 modifies Texas property tax law to allow open-space land to maintain its reduced "qualified open-space" tax appraisal when transferred to a new owner who uses the land in substantially the same way as the previous owner. The bill also creates a late-application provision allowing new owners to request this appraisal status after the standard deadline.

Why is this important

Open-space land (typically agricultural, wildlife management, or timber production land) receives significant tax breaks under Texas law—sometimes appraised at a fraction of market value. This bill affects rural property transfers, potentially making agricultural and ranch land more affordable to purchase since new owners won't face immediate tax increases. However, it also impacts county tax revenues and could incentivize land speculation if buyers can maintain low assessments while changing land use.

Potential points of contention

  • Revenue impact: Counties lose property tax revenue when land maintains reduced appraisal after transfer, affecting schools and local services funded by property taxes
  • "Materially the same" definition: The vague standard for what constitutes similar land use creates potential disputes and administrative burden for county appraisers determining eligibility
  • Equity concerns: The provision advantages property owners who can afford to hold land while also potentially benefiting wealthy investors over owner-operators, since late applications extend opportunities beyond the original deadline

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

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