HB 546

relating to the eligibility of land taken by condemnation for
appraisal for ad valorem tax purposes as qualified open-space land.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1.  Section 23.56, Tax Code, is amended to read as
Sec. 23.56.  LAND INELIGIBLE FOR APPRAISAL AS OPEN-SPACE
LAND.  Land is not eligible for appraisal as provided by this
(1)  the land is located inside the corporate limits of
an incorporated city or town, unless:
(A)  the city or town is not providing the land
with governmental and proprietary services substantially
equivalent in standard and scope to those services it provides in
other parts of the city or town with similar topography, land
utilization, and population density;
(B)  the land has been devoted principally to
agricultural use continuously for the preceding five years; or
(i)  has been devoted principally to
agricultural use or to production of timber or forest products
continuously for the preceding five years; and
(ii)  is used for wildlife management;
(2)  the land is owned by an individual who is a
nonresident alien or by a foreign government if that individual or
government is required by federal law or by rule adopted pursuant to
federal law to register his ownership or acquisition of that
(3)  the land is owned by a corporation, partnership,
trust, or other legal entity if the entity is required by federal
law or by rule adopted pursuant to federal law to register its
ownership or acquisition of that land and a nonresident alien or a
foreign government or any combination of nonresident aliens and
foreign governments own a majority interest in the entity; or
(4)  the land is owned by an entity other than the state
or a political subdivision of the state that acquired the land by
SECTION 2.  The change in law made by this Act applies 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.
SECTION 3.  This Act takes effect September 1, 2025.