The Comptroller of Public Accounts proposes amendments to §9.4001, concerning valuation of open-space and agricultural lands. These amendments are to reflect updates and revisions to the manual for the appraisal of agricultural land.

The amendments update and revise the January 2017 manual for the appraisal of agricultural land. The manual sets forth the methods to apply and the procedures to use in qualifying and appraising land used for agricultural and open-space land under Tax Code, Chapter 23, Subchapters C and D. The proposed updated version, dated November 2018, is available for review at https://comptroller.texas.gov/taxes/property-tax/ag-manual.php.

Generally, the substantive changes to the manual reflect statutory changes. The introduction includes an updated description of the adoption process for the manual to reflect changes in Senate Bill 526 and Senate Bill 594, 85th Legislature, 2017. The comptroller also proposes to remove references to a prohibition on homestead properties designated for agricultural use being used to secure home equity loans, as was amended in Texas Constitution, Article XVI, §50(a)(6). The proposed manual includes a new section titled "Cessation of Agricultural Use" to address specific circumstances for which special appraisal does not end when the land ceases to be devoted principally to agricultural use to the degree of intensity generally accepted in the area, based on changes made in House Bill 777, House Bill 3198, and Senate Bill 1459, 85th Legislature.

The proposed update includes a new section on the 2018 Federal Farm Bill. While the bill has not yet become law, cotton is likely to be eligible again for some government programs after the bill passes. The comptroller added this section to advise chief appraisers to keep up with any possible changes to the federal farm programs.

The comptroller also proposes a new question in Appendix A to provide example of property with an inaccessible area that may be classified as wasteland as determined by the chief appraiser.

Additionally, the comptroller proposes changes to improve the format, clarity and grammar of the manual. An overview of all proposed changes is available for review at https://comptroller.texas.gov/taxes/property-tax/docs/ag-manual-overview.pdf.

Pursuant to Tax Code, §23.52(d), these rules have been approved by the comptroller with the review and counsel of the Department of Agriculture.

Tom Currah, Chief Revenue Estimator, has determined that the proposed amendment would have no significant fiscal impact on the state government, units of local government, or individuals. The proposed amendment would benefit the public by improving the administration of local property valuation and taxation. There would be no anticipated significant economic cost to the public. The proposed amendment would have no significant fiscal impact on small businesses or rural communities.

Mr. Currah, has also determined that during the first five years that the proposed amendment is in effect, the amendment: will not create or eliminate a government program; will not require the creation or elimination of employee positions; will not require an increase or decrease in future legislative appropriations to the agency; will not require an increase or decrease in fees paid to the agency; will not increase or decrease the number of individuals subject to the rules' applicability; and will not positively or adversely affect this state's economy. This proposal amends a current rule.

You may submit comments on the proposal to Korry Castillo, Director, Property Tax Assistance Division, P.O. Box 13528, Austin, Texas 78711 or to the email address: ptad.rulecomments@cpa.texas.gov. The comptroller must receive your comments no later than 30 days from the date of publication of the proposal in the Texas Register.

These amendments are proposed under Tax Code, §23.41 (Appraisal); and §23.52 (Appraisal of Qualified Agricultural Land), which provide the comptroller with the authority to prepare and issue publications relating to the appraisal of property and to specify the methods to apply and the procedures to use in appraising qualified agricultural and open-space land for ad valorem tax purposes.

These amendments implement Tax Code, §23.41 (Appraisal) and §23.52 (Appraisal of Qualified Agricultural Land).