PART 1. COMPTROLLER OF PUBLIC ACCOUNTS
CHAPTER 9. PROPERTY TAX ADMINISTRATION
SUBCHAPTER I. VALUATION PROCEDURES
The Comptroller of Public Accounts adopts amendments to §9.4001, concerning valuation of open-space and agricultural lands, with changes to the proposed text as published in the August 16, 2024, issue of the Texas Register (49 TexReg 6193). The rule will be republished.
These amendments are to reflect updates and revisions to the manual for the appraisal of agricultural land.
The amendments update and revise the February 2022 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 agriculture and open-space land under Tax Code, Chapter 23, Subchapters C and D.
Generally, the substantive changes to the manual reflect statutory changes and changes dictated by case law. The manual is updated throughout, as well as adding a subsection for 1-d-1, to address that ownership of land is not considered to have changed if ownership of the land is transferred from the former owner to the surviving spouse of the former owner, based on changes made in House Bill 2354, 88th Legislature, R.S., 2023. In addition, the updated manual removes the requirement that agricultural advisory board members be residents of the district in response to House Bill 3207, 88th Legislature, R.S., 2023.
The manual adds a subsection for 1-d-1 to address the requirement that a chief appraiser shall take into consideration the effect (if any) that the presence of any applicable disease or pest or the designation of the area may have on the net income, based on changes made in House Bill 260, 88th Legislature, R.S., 2023. In addition, in response to SB 1191, 88th Legislature, R.S., 2023, the manual adds a paragraph to explain situations where the chief appraiser shall accept and approve or deny an application for appraisal after the deadline for filing the applications. The footnotes, years, values and figures were updated to be more recent.
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.
The comptroller received comments regarding adoption of the amendment from Faun Cullens, Chief Appraiser of Bastrop Central Appraisal District, Leana Mann, Chief Appraiser of Travis Central Appraisal District, and Chuck Lyon, Chief Appraiser of Palo Pinto Appraisal District.
Ms. Cullens and Ms. Mann commented that the manual should not be dated January 2024 because it will not be adopted until over nine months later, and it affects the standard to which appraisal districts are held and their performance in the Methods and Assistance Program Study.
The comptroller thanks Ms. Cullens and Ms. Mann for their comments, and in response, the comptroller is changing the effective date in the rule and on the manual's cover from January 2024 to October 2024.
Ms. Mann suggests additional clarification is needed on land that is used for horse training, as opposed to grazing and raising. The comptroller thanks Ms. Mann for submitting this comment but declines to make this change. The manual already advises the chief appraiser on land used for the training of horses on pages 8 and 9. Training of horses is also addressed in Question 19 on page 51 of Appendix A.
Ms. Mann also suggests the "manual authorize appraisal districts to set minimum acreage sizes based on generally accepted agricultural practices and categories of land." The comptroller thanks Ms. Mann for this comment but declines to make this change because the manual already advises the chief appraiser on pages 9 and 10 on degree of intensity and question 2 on pages 47 and 48 of Appendix B addresses minimum acreage requirements. Any expansion beyond the degree of intensity generally accepted in the area would have to be provided by the legislature.
Mr. Lyon voices concerns that the manual and comptroller's form 50-129 are providing two separate deadlines for late applications. He points out on page 40 under "Late Application" it says "{a} property owner may submit a late application for special appraisal after April 30 if it is filed before the ARB approves records for that year (usually in July)" while form 50-129 states "{a} late application may be filed up to midnight the day before the appraisal review board approves appraisal records for the year, which usually occurs in July."
The comptroller thanks Mr. Lyon for his comment but declines to make this change in the manual. The comptroller will instead update the form to match the language in the manual.
The comptroller is also correcting a typographical error on page 45 by changing the year 2020 to 2024 in the sentence "{t}he property sells on Nov. 1, 2020 2024, but there is no change of use."
These amendments are adopted under Tax Code, §§5.05 (Appraisal Manuals and Other Materials); 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 promulgate rules specifying 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, Chapter 23, Subchapters C and D.
§9.4001.Valuation of Open-Space and Agricultural Lands.
Adoption of the "Manual for the Appraisal of Agricultural Land." This manual specifies the methods to apply and the procedures to use in qualifying and appraising land used for agriculture and open-space land under Tax Code, Chapter 23, Subchapters C and D. Appraisal districts are required to use this manual in qualifying and appraising open-space land. The Comptroller of Public Accounts adopts by reference the Manual for the Appraisal of Agricultural Land dated October 2024. The manual is accessible on the Property Tax Assistance Division website. Copies of the manual can be obtained from the Comptroller of Public Accounts, Property Tax Assistance Division, P.O. Box 13528, Austin, Texas 78711-3528. Copies also may be requested by calling our toll-free number 1-800-252-9121. In Austin, call (512) 305-9999.
The agency certifies that legal counsel has reviewed the adoption and found it to be a valid exercise of the agency's legal authority.
Filed with the Office of the Secretary of State on November 12, 2024.
TRD-202405480
Victoria North
General Counsel for Fiscal and Agency Affairs
Comptroller of Public Accounts
Effective date: December 2, 2024
Proposal publication date: August 16, 2024
For further information, please call: (512) 475-2220
The Comptroller of Public Accounts adopts amendments to §9.4011, concerning valuation of timberland, with changes to the proposed text as published in the August 16, 2024, issue of the Texas Register (49 TexReg 6194). The rule will be republished.
These amendments are to reflect updates and revisions to the manual for the appraisal of timberland.
The amendments update and revise the March 2022 manual for the appraisal of timberland. The manual sets forth the methods to apply and the procedures to use in qualifying and appraising timberland and restricted-use timberland under Tax Code, Chapter 23, Subchapters E and H.
Generally, the substantive changes to the manual reflect statutory changes. The manual is updated to reflect the changes to the qualification criteria of the agricultural advisory board members in response to House Bill 3207, 88th Legislature, R.S., 2023 by eliminating the requirement that a member must have been a resident of the district for at least five years. Changes are made to reference more current prices, expenses and values throughout the manual.
Pursuant to Tax Code, §23.73(b), these rules have been approved by the comptroller with the review and counsel of the Texas A&M Forest Service.
The comptroller received one comment regarding adoption of the amendment from Leana Mann, Chief Appraiser of Travis Central Appraisal District.
Leana Mann, the Chief Appraiser of Travis Central Appraisal District, commented that the manual should not be dated January 2024 because it will not be adopted until over nine months later, and it affects the standard to which appraisal districts are held and their performance in the Methods and Assistance Program Study.
The comptroller thanks Ms. Mann for her comment, and in response, the comptroller is changing the effective date in the rule and on the manual's cover from January 2024 to October 2024.
These amendments are adopted under Tax Code, §§5.05 (Appraisal Manuals and Other Materials); 23.73 (Appraisal of Qualified Timber Land); and 23.9803 (Appraisal of Qualified Restricted-Use Timber Land), which authorize the comptroller to prepare and issue publications relating to the appraisal of property and to promulgate rules specifying the methods to apply and the procedures to use in appraising timberland and restricted-use timberland for ad valorem tax purposes.
These amendments implement Tax Code, Chapter 23, Subchapters E and H.
§9.4011.Appraisal of Timberlands.
Adoption of the Manual for the Appraisal of Timberland. This manual sets out both the eligibility requirements for timberland to qualify for productivity appraisal and the methodology for appraising qualified timberland and restricted use timberland. Appraisal districts are required by law to follow the procedures and methodology set out in this manual. The Comptroller of Public Accounts adopts by reference the Manual for the Appraisal of Timberland dated October 2024. Copies of this manual can be obtained from the Comptroller of Public Accounts, Property Tax Assistance Division, P.O. Box 13528, Austin, Texas 78711-3528 or from the Property Tax Assistance Division website. Copies may also be requested by calling our toll-free number 1-800-252-9121. In Austin, call (512) 305-9999. From a Telecommunications Device for the Deaf (TDD), call 1-800-248-4099, toll free. In Austin, the local TDD number is (512) 463-4621. This manual and those that have been superseded are available from the Comptroller's office as well as the State Archives.
The agency certifies that legal counsel has reviewed the adoption and found it to be a valid exercise of the agency's legal authority.
Filed with the Office of the Secretary of State on November 12, 2024.
TRD-202405481
Victoria North
General Counsel for Fiscal and Agency Affairs
Comptroller of Public Accounts
Effective date: December 2, 2024
Proposal publication date: August 16, 2024
For further information, please call: (512) 475-2220