SB 1546

relating to the appraisal for ad valorem tax purposes of certain
land on the basis of the land's productivity value when a portion of
the land is taken for a right-of-way through an exercise of the
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1.  Subchapter C, Chapter 23, Tax Code, is amended by
adding Section 23.424 to read as follows:
Sec. 23.424.  ELIGIBILITY OF LAND SUBJECT TO RIGHT-OF-WAY.
A designation of land for agricultural use under this subchapter
(1)  a portion of the land is taken through the exercise
of the power of eminent domain for use as a right-of-way; and
(2)  the portion of the land not taken through the
exercise of the power of eminent domain, regardless of the size of
that portion, otherwise qualifies for the designation.
SECTION 2.  Section 23.46(e-1), Tax Code, is amended to read
(e-1)  A portion of a parcel of land is not diverted to
nonagricultural use for purposes of Subsection (c) because the
portion is subject to a right-of-way [that is less than 200 feet
wide and] that was taken by condemnation if the remainder of the
parcel of land qualifies for appraisal under this subchapter.
SECTION 3.  Subchapter D, Chapter 23, Tax Code, is amended by
adding Section 23.527  to read as follows:
Sec. 23.527.  QUALIFICATION OF LAND SUBJECT TO RIGHT-OF-WAY.
The eligibility of land for appraisal under this subchapter does
(1)  a portion of the land is taken through the exercise
of the power of eminent domain for use as a right-of-way; and
(2)  the portion of the land not taken through the
exercise of the power of eminent domain, regardless of the size of
that portion, otherwise qualifies for appraisal under this
SECTION 4.  The changes in law made by this Act apply only to
the appraisal of land for ad valorem tax purposes for an ad valorem
tax year that begins on or after the effective date of this Act.
SECTION 5.  This Act takes effect January 1, 2026.