HB 3935

relating to an exemption from ad valorem taxation of a portion of
the appraised value of certain land that is located in a priority
groundwater management area and is not irrigated.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1.  Subchapter B, Chapter 11, Tax Code, is amended by
adding Section 11.38 to read as follows:
Sec. 11.38.  CERTAIN LAND IN PRIORITY GROUNDWATER MANAGEMENT
AREA.  (a)  In this section, "priority groundwater management area"
has the meaning assigned by Section 35.002, Water Code.
(b)  A person is entitled to an exemption from taxation of 35
percent of the appraised value of a tract of land the person owns
(1)  located in a priority groundwater management area;
(2)  at least one-half acre in area, not including any
portion of the tract underlying a structure;
(4)  not subject to appraisal under Subchapter C, D, E,
SECTION 2.  Section 11.43(c), Tax Code, is amended to read as
(c)  An exemption provided by Section 11.13, 11.131, 11.132,
11.133, 11.134, 11.17, 11.18, 11.182, 11.1827, 11.183, 11.19,
11.20, 11.21, 11.22, 11.23(a), (h), (j), (j-1), or (m), 11.231,
11.254, 11.27, 11.271, 11.29, 11.30, 11.31, 11.315, 11.35, [or]
11.36, or 11.38, once allowed, need not be claimed in subsequent
years, and except as otherwise provided by Subsection (e), the
exemption applies to the property until it changes ownership or the
person's qualification for the exemption changes.  However, except
as provided by Subsection (r), the chief appraiser may require a
person allowed one of the exemptions in a prior year to file a new
application to confirm the person's current qualification for the
exemption by delivering a written notice that a new application is
required, accompanied by an appropriate application form, to the
person previously allowed the exemption.  If the person previously
allowed the exemption is 65 years of age or older, the chief
appraiser may not cancel the exemption due to the person's failure
to file the new application unless the chief appraiser complies
with the requirements of Subsection (q), if applicable.
SECTION 3.  This Act applies only to a tax year that begins
on or after the effective date of this Act.
SECTION 4.  It is the intent of the 89th Legislature, Regular
Session, 2025, that the amendments made by this Act to Section
11.43(c), Tax Code, be harmonized with another Act of the 89th
Legislature, Regular Session, 2025, relating to nonsubstantive
additions to and corrections in enacted codes.
SECTION 5.  This Act takes effect January 1, 2026, but only
if the constitutional amendment proposed by the 89th Legislature,
Regular Session, 2025, to authorize the legislature to exempt from
ad valorem taxation a portion of the appraised value of certain land
that is located in a priority groundwater management area and is not
irrigated is approved by the voters.  If that amendment is not
approved by the voters, this Act has no effect.