ICSC Texas is monitoring several bills that would reduce or eliminate the property tax penalty a developer must pay when converting open-space agriculture valued property to developed property.

The bills include: 

  • HB 320 by Terry Canales (D-Edinburg) would reduce the five-year rollback penalty for a change in qualified open-space land to two years.
  • HB 801 by Jim Murphy (R-Houston) HB 1880 by Cole Hefner (R-Mount Pleasant) and would repeal Section 23.55 of the Property Tax Code, which imposes rollback taxes if open-space land changes to a non-agricultural purpose.
  • HB 1211 by Larry Phillips (R-Sherman) would change the penalty for a change of use of open-space land from five years to three years imposed at market value plus an annual interest rate of 5 percent instead of 7 percent.
  • HB 1662/HJR 68 by Dade Phelan (R-Port Neches) would repeal the penalty when agricultural or open-space land is changed to developed property.
  • HB 2314 by Jim Murphy (R-Houston) and SB 629 by Charles Schwertner (R-Georgetown) would remove interest from the penalty calculation for property converted from agriculture use valuation to developed property.