89S20116 DRS-D     By: Hopper H.B. No. 289       A BILL TO BE ENTITLED   AN ACT   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.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:   ARTICLE 1. REPEAL OF CERTAIN ELIGIBILITY AND ADDITIONAL TAX   PROVISIONS IN SUBCHAPTERS C AND D, CHAPTER 23, TAX CODE          SECTION 1.01.  Section 1.07(d), Tax Code, as amended by   H.B. 1533, Acts of the 89th Legislature, Regular Session, 2025, and   effective September 1, 2025, is amended to read as follows:          (d)  A notice required by Section 11.43(q), 11.45(d),   23.44(d), [23.46(c) or (f),] 23.54(e), 23.541(c), [23.55(e),]   23.551(a), 23.57(d), 23.76(e), 23.79(d), or 23.85(d) must be sent   by certified mail.  A notice required by Section 25.23(c)   pertaining to property that was not on the appraisal roll in a prior   year because it was omitted from the roll must be sent by certified   mail.          SECTION 1.02.  Section 23.20(g), Tax Code, is amended to   read as follows:          (g)  A waiver of a special appraisal of property under   Subchapter [C, D,] E, F, or G [of this chapter] does not constitute   a change of use of the property or diversion of the property to   another use for purposes of the imposition of additional taxes   under any of those subchapters.          SECTION 1.03.  Section 23.42(a), Tax Code, is amended to   read as follows:          (a)  An individual is entitled to have land the individual   [he] owns designated for agricultural use if, on January 1:                (1)  [the land has been devoted exclusively to or   developed continuously for agriculture for the three years   preceding the current year;                [(2)]  the individual is using and intends to use the   land for agriculture as an occupation or a business venture for   profit during the current year; and                (2) [(3)]  agriculture is the individual's primary   occupation and primary source of income.          SECTION 1.04.  Sections 23.51(1) and (7), Tax Code, are   amended to read as follows:                (1)  "Qualified open-space land" means land that is   [currently] devoted principally to agricultural use to the degree   of intensity generally accepted in the area [and that has been   devoted principally to agricultural use or to production of timber   or forest products for five of the preceding seven years] or land   that is used principally as an ecological laboratory by a public or   private college or university [and that has been used principally   in that manner by a college or university for five of the preceding   seven years].  Qualified open-space land includes all appurtenances   to the land.  For the purposes of this subdivision, appurtenances to   the land means private roads, dams, reservoirs, water wells,   canals, ditches, terraces, and other reshapings of the soil,   fences, and riparian water rights.  [Notwithstanding the other   provisions of this subdivision, land that is currently devoted   principally to wildlife management as defined by Subdivision (7)(B)   or (C) to the degree of intensity generally accepted in the area   qualifies for appraisal as qualified open-space land under this   subchapter regardless of the manner in which the land was used in   any preceding year.]                (7)  "Wildlife management" means:                      (A)  actively using land in a manner that meets   the standards developed under Section 23.521 [that at the time the   wildlife-management use began was appraised as qualified   open-space land under this subchapter or as qualified timber land   under Subchapter E] in at least three of the following ways to   propagate a sustaining breeding, migrating, or wintering   population of indigenous wild animals for human use, including   food, medicine, or recreation:                            (i)  habitat control;                            (ii)  erosion control;                            (iii)  predator control;                            (iv)  providing supplemental supplies of   water;                            (v)  providing supplemental supplies of   food;                            (vi)  providing shelters; and                            (vii)  making of census counts to determine   population;                      (B)  actively using land to protect federally   listed endangered species under a federal permit if the land is:                            (i)  included in a habitat preserve and is   subject to a conservation easement created under Chapter 183,   Natural Resources Code; or                            (ii)  part of a conservation development   under a federally approved habitat conservation plan that restricts   the use of the land to protect federally listed endangered species;   or                      (C)  actively using land for a conservation or   restoration project to provide compensation for natural resource   damages pursuant to the Comprehensive Environmental Response,   Compensation, and Liability Act of 1980 (42 U.S.C. Section 9601 et   seq.), the Oil Pollution Act of 1990 (33 U.S.C. Section 2701 et   seq.), the Federal Water Pollution Control Act (33 U.S.C. Section   1251 et seq.), or Chapter 40, Natural Resources Code.          SECTION 1.05.   Sections 23.52(e) and (g), Tax Code, are   amended to read as follows:          (e)  The [For the purposes of Section 23.55 of this code,   the] chief appraiser [also] shall determine the market value of   qualified open-space land and shall record both the market value   and the appraised value in the appraisal records.          (g)  The category of land that qualifies under Section   23.51(7) is the native pasture category [of the land under this   subchapter or Subchapter E, as applicable, before the   wildlife-management use began].          SECTION 1.06.  Section 23.524(e), Tax Code, is amended to   read as follows:          (e)  Notwithstanding Subsection (b) or (c), the eligibility   of [For the purposes of this subchapter, a change of use of the]   land subject to this section for appraisal under this subchapter is   considered to have ended [occurred] on the day the period   prescribed by Subsection (c) begins if the owner has not fully   complied with the terms of the agreement described by Subsection   (b) on the date the agreement ends.          SECTION 1.07.  Sections 23.551(a) and (d), Tax Code, are   amended to read as follows:          (a)  If land appraised as provided by this subchapter is   owned by an individual 65 years of age or older, before making a   determination that [a change in use of] the land is no longer   eligible for appraisal under this subchapter [has occurred], the   chief appraiser shall deliver a written notice to the owner stating   that the chief appraiser believes [a change in use of] the land may   no longer be eligible for appraisal under this subchapter [have   occurred].          (d)  If the chief appraiser does not receive a response on or   before the 60th day after the date the notice is mailed, the chief   appraiser must make a reasonable effort to locate the owner and   determine whether the land remains eligible to be appraised as   provided by this subchapter before determining that [a change in   use of] the land is no longer eligible for appraisal under this   subchapter [has occurred].          SECTION 1.08.  Section 31.01(c), Tax Code, is amended to   read as follows:          (c)  The tax bill or a separate statement accompanying the   tax bill shall:                (1)  identify the property subject to the tax;                (2)  state the appraised value, assessed value, and   taxable value of the property;                (3)  if the property is land appraised as provided by   Subchapter [C, D,] E[,] or H, Chapter 23, state the market value and   the taxable value for purposes of deferred or additional taxation   as provided by Section [23.46, 23.55,] 23.76[,] or 23.9807, as   applicable;                (4)  state the assessment ratio for the taxing unit;                (5)  state the type and amount of any partial exemption   applicable to the property, indicating whether it applies to   appraised or assessed value;                (6)  state the total tax rate for the taxing unit;                (7)  state the amount of tax due, the due date, and the   delinquency date;                (8)  explain the payment option and discounts provided   by Sections 31.03 and 31.05, if available to the taxing unit's   taxpayers, and state the date on which each of the discount periods   provided by Section 31.05 concludes, if the discounts are   available;                (9)  state the rates of penalty and interest imposed   for delinquent payment of the tax;                (10)  include the name and telephone number of the   assessor for the taxing unit and, if different, of the collector for   the taxing unit;                (11)  for real property, state for the current tax year   and each of the preceding five tax years:                      (A)  the appraised value and taxable value of the   property;                      (B)  the total tax rate for the taxing unit;                      (C)  the amount of taxes imposed on the property   by the taxing unit; and                      (D)  the difference, expressed as a percent   increase or decrease, as applicable, in the amount of taxes imposed   on the property by the taxing unit compared to the amount imposed   for the preceding tax year; and                (12)  for real property, state the differences,   expressed as a percent increase or decrease, as applicable, in the   following for the current tax year as compared to the fifth tax year   before that tax year:                      (A)  the appraised value and taxable value of the   property;                      (B)  the total tax rate for the taxing unit; and                      (C)  the amount of taxes imposed on the property   by the taxing unit.          SECTION 1.09.  Section 41.41(a), Tax Code, as amended by   H.B. 4809, Acts of the 89th Legislature, Regular Session, 2025, and   effective January 1, 2027, is amended to read as follows:          (a)  A property owner is entitled to protest before the   appraisal review board the following actions:                (1)  determination of the appraised value of the   owner's property or, in the case of land appraised as provided by   Subchapter C, D, E, or H, Chapter 23, determination of its appraised   or market value;                (2)  unequal appraisal of the owner's property;                (3)  inclusion of the owner's property on the appraisal   records;                (4)  denial to the property owner in whole or in part of   a partial exemption;                (5)  determination that the owner's land does not   qualify for appraisal as provided by Subchapter C, D, E, or H,   Chapter 23;                (6)  identification of the taxing units in which the   owner's property is taxable in the case of the appraisal district's   appraisal roll;                (7)  determination that the property owner is the owner   of property;                (8)  a determination that a change in use of land   appraised under Subchapter [C, D,] E[,] or H, Chapter 23, has   occurred;                (9)  a determination of:                      (A)  the appraised value of a structure or   archeological site that qualifies for an exemption under Section   11.24;                       (B)  the appraised value of the land necessary to   access the structure or site; and                      (C)  the allocation of the appraised value between   the structure or site and the land; or                (10)  any other action of the chief appraiser,   appraisal district, or appraisal review board that applies to and   adversely affects the property owner.          SECTION 1.10.  Section 41.44(a), Tax Code, is amended to   read as follows:          (a)  Except as provided by Subsections (b), (c), (c-1), and   (c-2), to be entitled to a hearing and determination of a protest,   the property owner initiating the protest must file a written   notice of the protest with the appraisal review board having   authority to hear the matter protested:                (1)  not later than May 15 or the 30th day after the   date that notice to the property owner was delivered to the property   owner as provided by Section 25.19, whichever is later;                (2)  in the case of a protest of a change in the   appraisal records ordered as provided by Subchapter A of this   chapter or by Chapter 25, not later than the 30th day after the date   notice of the change is delivered to the property owner;                (3)  in the case of a determination that a change in the   use of land appraised under Subchapter [C, D,] E[,] or H, Chapter   23, has occurred, not later than the 30th day after the date the   notice of the determination is delivered to the property owner;                (4)  in the case of a determination of eligibility for a   refund under Section 23.1243, not later than the 30th day after the   date the notice of the determination is delivered to the property   owner; or                (5)  in the case of a protest of the modification or   denial of an application for an exemption under Section 11.35, or   the determination of an appropriate damage assessment rating for an   item of qualified property under that section, not later than the   30th day after the date the property owner receives the notice   required under Section 11.45(e).          SECTION 1.11.  Section 60.022, Agriculture Code, is amended   to read as follows:          Sec. 60.022.  CONTENTS OF PETITION. A petition filed under   Section 60.021 must:                (1)  describe the boundaries of the proposed district   by metes and bounds or by lot and block number, if there is a   recorded map or plat and survey of the area;                (2)  include a name for the proposed district, which   must include the term "Agricultural Development District";                (3)  be signed by the landowners of any land to be   included within the proposed district and provide an acknowledgment   consistent with Section 121.001, Civil Practice and Remedies Code,   that the landowners desire the land to be included in the district;                (4)  include the names of at least five persons who are   willing and qualified to serve as temporary directors of the   district;                (5)  name each county in which any agricultural   facilities to be owned by the district are to be located;                (6)  name each municipality in which any part of the   district is to be located;                (7)  state the general nature of the proposed   development and the cost of the development as then estimated by the   petitioners;                (8)  state the necessity and feasibility of the   proposed district and whether the district will serve the public   purpose of furthering agricultural interests;                (9)  include a pledge that the district will make   payments in lieu of taxes to any school district and county in which   any real property to be owned by the district is located, in [as   follows:                      [(A)]  annual payments to each entity that are   equal to the amount of taxes imposed on the real property by the   entity in the year of the district's creation; and                      [(B)  a payment to each entity equal to the amount   that would be due under Section 23.55, Tax Code, on the district's   date of creation; and]                (10)  include a pledge that, if the district employs   more than 50 persons, the district will make payments in lieu of   taxes to any school district, in addition to those made under   Subdivision (9), in an amount negotiated between the district and   the school district.          SECTION 1.12.  Section 21.0421(e), Property Code, is amended   to read as follows:          (e)  This section does not[:                [(1)]  authorize groundwater rights appraised   separately from the real property under this section to be   appraised separately from real property for property tax appraisal   purposes[; or                [(2)  subject real property condemned for the purpose   described by Subsection (a) to an additional tax as provided by   Section 23.46 or 23.55, Tax Code].          SECTION 1.13.  Subsection (a), Section 23.46, Tax Code, is   transferred to Section 23.41, Tax Code, and redesignated as   Subsection (c), Section 23.41, Tax Code, to read as follows:          (c) [(a)]  When appraising land designated for agricultural   use, the chief appraiser also shall appraise the land at its market   value and shall record both the market value and the value based on   its capacity to produce agricultural products in the appraisal   records.          SECTION 1.14.  The following provisions of the Tax Code are   repealed:                (1)  the heading to Section 23.46;                (2)  Sections 23.46(b), (c), (d), (e), (e-1), (f), and   (g);                (3)  Sections 23.47(c) and (d);                (4)  Section 23.55; and                (5)  Sections 23.58(c) and (d).          SECTION 1.15.  (a)  Sections 23.42(a), 23.51(1) and (7), and   23.52(g), Tax Code, as amended by this Act, apply only to the   appraisal of land for ad valorem tax purposes for a tax year that   begins on or after the effective date of this Act.          (b)  The repeal of Sections 23.46 and 23.55, Tax Code, by   this Act does not affect an additional tax imposed as a result of a   change of use or sale of land appraised under Subchapter C or D,   Chapter 23, Tax Code, that occurred before the effective date of   this Act, and the former law is continued in effect for purposes of   that tax.   ARTICLE 2. REPEAL OF CERTAIN ELIGIBILITY AND ADDITIONAL TAX   PROVISIONS IN SUBCHAPTER D, CHAPTER 23, TAX CODE          SECTION 2.01.  Section 1.07(d), Tax Code, as amended by   H.B. 1533, Acts of the 89th Legislature, Regular Session, 2025, and   effective September 1, 2025, is amended to read as follows:          (d)  A notice required by Section 11.43(q), 11.45(d),   23.44(d), 23.46(c) or (f), 23.54(e), 23.541(c), [23.55(e),]   23.551(a), 23.57(d), 23.76(e), 23.79(d), or 23.85(d) must be sent   by certified mail.  A notice required by Section 25.23(c)   pertaining to property that was not on the appraisal roll in a prior   year because it was omitted from the roll must be sent by certified   mail.          SECTION 2.02.  Section 23.20(g), Tax Code, is amended to   read as follows:          (g)  A waiver of a special appraisal of property under   Subchapter C, [D,] E, F, or G [of this chapter] does not constitute   a change of use of the property or diversion of the property to   another use for purposes of the imposition of additional taxes   under any of those subchapters.          SECTION 2.03.  Sections 23.51(1) and (7), Tax Code, are   amended to read as follows:                (1)  "Qualified open-space land" means land that is   [currently] devoted principally to agricultural use to the degree   of intensity generally accepted in the area [and that has been   devoted principally to agricultural use or to production of timber   or forest products for five of the preceding seven years] or land   that is used principally as an ecological laboratory by a public or   private college or university [and that has been used principally   in that manner by a college or university for five of the preceding   seven years].  Qualified open-space land includes all appurtenances   to the land.  For the purposes of this subdivision, appurtenances to   the land means private roads, dams, reservoirs, water wells,   canals, ditches, terraces, and other reshapings of the soil,   fences, and riparian water rights.  [Notwithstanding the other   provisions of this subdivision, land that is currently devoted   principally to wildlife management as defined by Subdivision (7)(B)   or (C) to the degree of intensity generally accepted in the area   qualifies for appraisal as qualified open-space land under this   subchapter regardless of the manner in which the land was used in   any preceding year.]                (7)  "Wildlife management" means:                      (A)  actively using land in a manner that meets   the standards developed under Section 23.521 [that at the time the   wildlife-management use began was appraised as qualified   open-space land under this subchapter or as qualified timber land   under Subchapter E] in at least three of the following ways to   propagate a sustaining breeding, migrating, or wintering   population of indigenous wild animals for human use, including   food, medicine, or recreation:                            (i)  habitat control;                            (ii)  erosion control;                            (iii)  predator control;                            (iv)  providing supplemental supplies of   water;                            (v)  providing supplemental supplies of   food;                            (vi)  providing shelters; and                            (vii)  making of census counts to determine   population;                      (B)  actively using land to protect federally   listed endangered species under a federal permit if the land is:                            (i)  included in a habitat preserve and is   subject to a conservation easement created under Chapter 183,   Natural Resources Code; or                            (ii)  part of a conservation development   under a federally approved habitat conservation plan that restricts   the use of the land to protect federally listed endangered species;   or                      (C)  actively using land for a conservation or   restoration project to provide compensation for natural resource   damages pursuant to the Comprehensive Environmental Response,   Compensation, and Liability Act of 1980 (42 U.S.C. Section 9601 et   seq.), the Oil Pollution Act of 1990 (33 U.S.C. Section 2701 et   seq.), the Federal Water Pollution Control Act (33 U.S.C. Section   1251 et seq.), or Chapter 40, Natural Resources Code.          SECTION 2.04.  Sections 23.52(e) and (g), Tax Code, are   amended to read as follows:          (e)  The [For the purposes of Section 23.55 of this code,   the] chief appraiser [also] shall determine the market value of   qualified open-space land and shall record both the market value   and the appraised value in the appraisal records.          (g)  The category of land that qualifies under Section   23.51(7) is the native pasture category [of the land under this   subchapter or Subchapter E, as applicable, before the   wildlife-management use began].          SECTION 2.05.  Section 23.524(e), Tax Code, is amended to   read as follows:          (e)  Notwithstanding Subsection (b) or (c), the eligibility   of [For the purposes of this subchapter, a change of use of the]   land subject to this section for appraisal under this subchapter is   considered to have ended [occurred] on the day the period   prescribed by Subsection (c) begins if the owner has not fully   complied with the terms of the agreement described by Subsection   (b) on the date the agreement ends.          SECTION 2.06.  Sections 23.551(a) and (d), Tax Code, are   amended to read as follows:          (a)  If land appraised as provided by this subchapter is   owned by an individual 65 years of age or older, before making a   determination that [a change in use of] the land is no longer   eligible for appraisal under this subchapter [has occurred], the   chief appraiser shall deliver a written notice to the owner stating   that the chief appraiser believes [a change in use of] the land may   no longer be eligible for appraisal under this subchapter [have   occurred].          (d)  If the chief appraiser does not receive a response on or   before the 60th day after the date the notice is mailed, the chief   appraiser must make a reasonable effort to locate the owner and   determine whether the land remains eligible to be appraised as   provided by this subchapter before determining that [a change in   use of] the land is no longer eligible for appraisal under this   subchapter [has occurred].          SECTION 2.07.  Sections 31.01(c) and (c-1), Tax Code, are   amended to read as follows:          (c)  The tax bill or a separate statement accompanying the   tax bill shall:                (1)  identify the property subject to the tax;                (2)  state the appraised value, assessed value, and   taxable value of the property;                (3)  if the property is land appraised as provided by   Subchapter C, [D,] E, or H, Chapter 23, state the market value and   the taxable value for purposes of deferred or additional taxation   as provided by Section 23.46, [23.55,] 23.76, or 23.9807, as   applicable;                (4)  if the property is land appraised as provided by   Subchapter D, Chapter 23, state the market value of the land;                (5)  state the assessment ratio for the taxing unit;                (6) [(5)]  state the type and amount of any partial   exemption applicable to the property, indicating whether it applies   to appraised or assessed value;                (7) [(6)]  state the total tax rate for the taxing   unit;                (8) [(7)]  state the amount of tax due, the due date,   and the delinquency date;                (9) [(8)]  explain the payment option and discounts   provided by Sections 31.03 and 31.05, if available to the taxing   unit's taxpayers, and state the date on which each of the discount   periods provided by Section 31.05 concludes, if the discounts are   available;                (10) [(9)]  state the rates of penalty and interest   imposed for delinquent payment of the tax;                (11) [(10)]  include the name and telephone number of   the assessor for the taxing unit and, if different, of the collector   for the taxing unit;                (12) [(11)]  for real property, state for the current   tax year and each of the preceding five tax years:                      (A)  the appraised value and taxable value of the   property;                      (B)  the total tax rate for the taxing unit;                      (C)  the amount of taxes imposed on the property   by the taxing unit; and                      (D)  the difference, expressed as a percent   increase or decrease, as applicable, in the amount of taxes imposed   on the property by the taxing unit compared to the amount imposed   for the preceding tax year; and                (13) [(12)]  for real property, state the differences,   expressed as a percent increase or decrease, as applicable, in the   following for the current tax year as compared to the fifth tax year   before that tax year:                      (A)  the appraised value and taxable value of the   property;                      (B)  the total tax rate for the taxing unit; and                      (C)  the amount of taxes imposed on the property   by the taxing unit.          (c-1)  If for any of the preceding six tax years any   information required by Subsection (c)(12) [(c)(11)] or (13) [(12)]   to be included in a tax bill or separate statement is unavailable,   the tax bill or statement must state that the information is not   available for that year.          SECTION 2.08.  Section 41.41(a), Tax Code, as amended by   H.B. 4809, Acts of the 89th Legislature, Regular Session, 2025, and   effective January 1, 2027, is amended to read as follows:          (a)  A property owner is entitled to protest before the   appraisal review board the following actions:                (1)  determination of the appraised value of the   owner's property or, in the case of land appraised as provided by   Subchapter C, D, E, or H, Chapter 23, determination of its appraised   or market value;                (2)  unequal appraisal of the owner's property;                (3)  inclusion of the owner's property on the appraisal   records;                (4)  denial to the property owner in whole or in part of   a partial exemption;                (5)  determination that the owner's land does not   qualify for appraisal as provided by Subchapter C, D, E, or H,   Chapter 23;                (6)  identification of the taxing units in which the   owner's property is taxable in the case of the appraisal district's   appraisal roll;                (7)  determination that the property owner is the owner   of property;                (8)  a determination that a change in use of land   appraised under Subchapter C, [D,] E, or H, Chapter 23, has   occurred;                (9)  a determination of:                      (A)  the appraised value of a structure or   archeological site that qualifies for an exemption under Section   11.24;                       (B)  the appraised value of the land necessary to   access the structure or site; and                      (C)  the allocation of the appraised value between   the structure or site and the land; or                (10)  any other action of the chief appraiser,   appraisal district, or appraisal review board that applies to and   adversely affects the property owner.          SECTION 2.09.  Section 41.44(a), Tax Code, is amended to   read as follows:          (a)  Except as provided by Subsections (b), (c), (c-1), and   (c-2), to be entitled to a hearing and determination of a protest,   the property owner initiating the protest must file a written   notice of the protest with the appraisal review board having   authority to hear the matter protested:                (1)  not later than May 15 or the 30th day after the   date that notice to the property owner was delivered to the property   owner as provided by Section 25.19, whichever is later;                (2)  in the case of a protest of a change in the   appraisal records ordered as provided by Subchapter A of this   chapter or by Chapter 25, not later than the 30th day after the date   notice of the change is delivered to the property owner;                (3)  in the case of a determination that a change in the   use of land appraised under Subchapter C, [D,] E, or H, Chapter 23,   has occurred, not later than the 30th day after the date the notice   of the determination is delivered to the property owner;                (4)  in the case of a determination of eligibility for a   refund under Section 23.1243, not later than the 30th day after the   date the notice of the determination is delivered to the property   owner; or                (5)  in the case of a protest of the modification or   denial of an application for an exemption under Section 11.35, or   the determination of an appropriate damage assessment rating for an   item of qualified property under that section, not later than the   30th day after the date the property owner receives the notice   required under Section 11.45(e).          SECTION 2.10.  Section 60.022, Agriculture Code, is amended   to read as follows:          Sec. 60.022.  CONTENTS OF PETITION. A petition filed under   Section 60.021 must:                (1)  describe the boundaries of the proposed district   by metes and bounds or by lot and block number, if there is a   recorded map or plat and survey of the area;                (2)  include a name for the proposed district, which   must include the term "Agricultural Development District";                (3)  be signed by the landowners of any land to be   included within the proposed district and provide an acknowledgment   consistent with Section 121.001, Civil Practice and Remedies Code,   that the landowners desire the land to be included in the district;                (4)  include the names of at least five persons who are   willing and qualified to serve as temporary directors of the   district;                (5)  name each county in which any agricultural   facilities to be owned by the district are to be located;                (6)  name each municipality in which any part of the   district is to be located;                (7)  state the general nature of the proposed   development and the cost of the development as then estimated by the   petitioners;                (8)  state the necessity and feasibility of the   proposed district and whether the district will serve the public   purpose of furthering agricultural interests;                (9)  include a pledge that the district will make   payments in lieu of taxes to any school district and county in which   any real property to be owned by the district is located, in [as   follows:                      [(A)]  annual payments to each entity that are   equal to the amount of taxes imposed on the real property by the   entity in the year of the district's creation; and                      [(B)  a payment to each entity equal to the amount   that would be due under Section 23.55, Tax Code, on the district's   date of creation; and]                (10)  include a pledge that, if the district employs   more than 50 persons, the district will make payments in lieu of   taxes to any school district, in addition to those made under   Subdivision (9), in an amount negotiated between the district and   the school district.          SECTION 2.11.  Section 21.0421(e), Property Code, is amended   to read as follows:          (e)  This section does not:                (1)  authorize groundwater rights appraised separately   from the real property under this section to be appraised   separately from real property for property tax appraisal purposes;   or                (2)  subject real property condemned for the purpose   described by Subsection (a) to an additional tax as provided by   Section 23.46 [or 23.55], Tax Code.          SECTION 2.12.  The following provisions of the Tax Code are   repealed:                (1)  Section 23.55; and                (2)  Sections 23.58(c) and (d).          SECTION 2.13.  (a)  Sections 23.51(1) and (7) and 23.52(g),   Tax Code, as amended by this Act, apply only to the appraisal of   land for ad valorem tax purposes for a tax year that begins on or   after the effective date of this Act.          (b)  The repeal of Section 23.55, Tax Code, by this Act does   not affect an additional tax imposed as a result of a change of use   of land appraised under Subchapter D, Chapter 23, Tax Code, that   occurred before the effective date of this Act, and the former law   is continued in effect for purposes of that tax.   ARTICLE 3. EFFECTIVE DATE          SECTION 3.01.  (a) Except as otherwise provided by this   section, this Act takes effect January 1, 2027.          (b)  Article 1 of this Act takes effect only if the   constitutional amendment proposed by the 89th Legislature, 2nd   Called Session, 2025, repealing the provisions that require that   land be devoted to agricultural use for a specified period to be   eligible for appraisal for ad valorem tax purposes on the basis of   its productivity value and that subject land appraised on that   basis to an additional tax when the land is diverted to a purpose   other than agricultural use or sold is approved by the voters. If   that amendment is not approved by the voters, Article 1 of this Act   has no effect.          (c)  Article 2 of this Act takes effect only if Article 1 of   this Act does not take effect.  If Article 1 of this Act takes   effect, Article 2 of this Act has no effect.