Tex. Tax Code Section 23.46
Additional Taxation


(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.

(b)

Property taxes imposed on land designated for agricultural use are based on the land’s agricultural use value determined as provided by Section 23.41 (Appraisal) of this code after the appropriate assessment ratio has been applied to that value. When an assessor calculates the amount of tax due on the land, however, he shall also calculate the amount of tax that would have been imposed had the land not been designated for agricultural use. The difference in the amount of tax imposed and the amount that would have been imposed is the amount of additional tax for that year, and the assessor shall enter that amount in his tax records relating to the property.

(c)

If land that has been designated for agricultural use in any year is sold or diverted to a nonagricultural use, the total amount of additional taxes for the three years preceding the year in which the land is sold or diverted plus interest at the rate provided for delinquent taxes becomes due. Subject to Subsection (f), a determination that the land has been diverted to a nonagricultural use is made by the chief appraiser. For purposes of this subsection, the chief appraiser may not consider any period during which land is owned by the state in determining whether the land has been diverted to a nonagricultural use. The chief appraiser shall deliver a notice of the determination to the owner of the land as soon as possible after making the determination and shall include in the notice an explanation of the owner’s right to protest the determination. If the owner does not file a timely protest or if the final determination of the protest is that the additional taxes are due, the assessor for each taxing unit shall prepare and deliver a bill for the additional taxes plus interest as soon as practicable after the change of use occurs. If the additional taxes are due because of a sale of the land, the assessor for each taxing unit shall prepare and deliver the bill as soon as practicable after the sale occurs. The taxes and interest are due and become delinquent and incur penalties and interest as provided by law for ad valorem taxes imposed by the taxing unit if not paid before the next February 1 that is at least 20 days after the date the bill is delivered to the owner of the land.

(d)

A tax lien attaches to the land on the date the sale or change of use occurs to secure payment of the additional tax and interest imposed by Subsection (c) of this section and any penalties incurred. The lien exists in favor of all taxing units for which the additional tax is imposed.

(e)

Land is not diverted to nonagricultural use for purposes of Subsection (c) of this section solely because the owner of the land claims it as part of his residence homestead for purposes of Section 11.13 (Residence Homestead) of this code.

(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.

(f)

If land designated for agricultural use under this subchapter is owned by an individual 65 years of age or older, before making a determination that the land has been diverted to a nonagricultural use, the chief appraiser shall deliver a written notice to the owner stating that the chief appraiser believes the land may have been diverted to a nonagricultural use. The notice must include a form on which the owner may indicate that the owner remains entitled to have the land designated for agricultural use and a self-addressed postage prepaid envelope with instructions for returning the form to the chief appraiser. The chief appraiser shall consider the owner’s response on the form in determining whether the land has been diverted to a nonagricultural use. 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 owner remains entitled to have the land designated for agricultural use before determining that the land has been diverted to a nonagricultural use. For purposes of this subsection, sending an additional notice to the owner immediately after the expiration of the 60-day period by first class mail in an envelope on which is written, in all capital letters, “RETURN SERVICE REQUESTED,” or another appropriate statement directing the United States Postal Service to return the notice if it is not deliverable as addressed, or providing the additional notice in another manner that the chief appraiser determines is appropriate, constitutes a reasonable effort on the part of the chief appraiser.

(g)

If the additional taxes are due because the land has been diverted to a nonagricultural use as a result of a condemnation, the additional taxes and interest imposed by this section are the personal obligation of the condemning entity and not the property owner from whom the property was taken.
Acts 1979, 66th Leg., p. 2256, ch. 841, Sec. 1, eff. Jan. 1, 1982. Amended by Acts 1981, 67th Leg., 1st C.S., p. 141, ch. 13, Sec. 66, eff. Jan. 1, 1982; Acts 1983, 68th Leg., p. 4147, ch. 652, Sec. 1, eff. June 19, 1983; Acts 1983, 68th Leg., p. 4824, ch. 851, Sec. 11, eff. Aug. 29, 1983; Acts 1989, 71st Leg., ch. 796, Sec. 18, eff. Sept. 1, 1989; Acts 1997, 75th Leg., ch. 345, Sec. 4, eff. Sept. 1, 1997.
Amended by:
Acts 2015, 84th Leg., R.S., Ch. 352 (H.B. 1464), Sec. 3, eff. September 1, 2015.
Acts 2021, 87th Leg., R.S., Ch. 55 (S.B. 725), Sec. 1, eff. September 1, 2021.

Source: Section 23.46 — Additional Taxation, https://statutes.­capitol.­texas.­gov/Docs/TX/htm/TX.­23.­htm#23.­46 (accessed Mar. 23, 2024).

23.01
Appraisals Generally
23.03
Compilation of Large Properties and Properties Subject to Limitation on Appraised or Taxable Value
23.011
Cost Method of Appraisal
23.11
Governmental Action that Constitutes Taking
23.012
Income Method of Appraisal
23.12
Inventory
23.013
Market Data Comparison Method of Appraisal
23.13
Taxable Leaseholds
23.014
Exclusion of Property as Real Property
23.14
Appraisal of Property Subject to Environmental Response Requirement
23.15
Intangibles of an Insurance Company
23.16
Intangibles of a Savings and Loan Association
23.17
Mineral Interest Not Being Produced
23.18
Property Owned by a Nonprofit Homeowners’ Organization for the Benefit of Its Members
23.19
Property Occupied by Stockholders of Corporation Incorporated Under Cooperative Association Act
23.20
Waiver of Special Appraisal
23.21
Property Used to Provide Affordable Housing
23.22
Land Use of Which Is Restricted by Governmental Entity
23.23
Limitation on Appraised Value of Residence Homestead
23.24
Furniture, Fixtures, and Equipment
23.25
Appraisal of Land Used for Single-family Residential Purposes that Is Contiguous to Agricultural or Open-space Land with Common Ownership
23.26
Solar Energy Property
23.41
Appraisal
23.42
Eligibility
23.43
Application
23.44
Action on Application
23.45
Application Confidential
23.46
Additional Taxation
23.47
Loan Secured by Lien on Agricultural-use Land
23.48
Reappraisal of Land Subject to Temporary Quarantine for Ticks
23.51
Definitions
23.52
Appraisal of Qualified Agricultural Land
23.53
Capitalization Rate
23.54
Application
23.55
Change of Use of Land
23.56
Land Ineligible for Appraisal as Open-space Land
23.57
Action on Applications
23.58
Loan Secured by Lien on Open-space Land
23.59
Appraisal of Open-space Land that Is Converted to Timber Production
23.60
Reappraisal of Land Subject to Temporary Quarantine for Ticks
23.71
Definitions
23.72
Qualification for Productivity Appraisal
23.73
Appraisal of Qualified Timber Land
23.74
Capitalization Rate
23.75
Application
23.76
Change of Use of Land
23.77
Land Ineligible for Appraisal as Timber Land
23.78
Minimum Taxable Value of Timber Land
23.79
Action on Applications
23.81
Definitions
23.82
Voluntary Restrictions
23.83
Appraisal of Restricted Land
23.84
Application
23.85
Action on Application
23.86
Additional Taxation for Preceding Years
23.87
Penalty for Violating Deed Restriction
23.91
Definitions
23.92
Voluntary Restrictions
23.93
Appraisal of Restricted Land
23.94
Application
23.95
Action on Application
23.96
Taxation for Preceding Years
23.97
Penalty for Violating Deed Restriction
23.0101
Consideration of Alternate Appraisal Methods
23.121
Dealer’s Motor Vehicle Inventory
23.122
Prepayment of Taxes by Certain Taxpayers
23.123
Declarations and Statements Confidential
23.124
Dealer’s Vessel and Outboard Motor Inventory
23.125
Prepayment of Taxes by Certain Taxpayers
23.126
Declarations and Statements Confidential
23.127
Retail Manufactured Housing Inventory
23.128
Prepayment of Taxes by Manufactured Housing Retailers
23.129
Waiver of Certain Penalties
23.135
License to Occupy Dwelling Unit in Tax-exempt Retirement Community
23.175
Oil or Gas Interest
23.215
Appraisal of Certain Nonexempt Property Used for Low-income or Moderate-income Housing
23.231
Circuit Breaker Limitation on Appraised Value of Real Property Other than Residence Homestead
23.425
Eligibility of Land Used for Growing Florist Items in Certain Counties
23.426
Temporary Cessation of Agricultural Use Due to Quarantine for Ticks
23.431
Late Application for Agricultural Designation
23.521
Standards for Qualification of Land for Appraisal Based on Wildlife Management Use
23.522
Temporary Cessation of Agricultural Use During Drought
23.523
Temporary Cessation of Agricultural Use When Property Owner Deployed or Stationed Outside State as Member of Armed Services
23.524
Temporary Cessation of Agricultural Use to Manage the Spread of Certain Pests
23.525
Oil and Gas Operations on Land
23.526
Temporary Cessation of Agricultural Use Due to Quarantine for Ticks
23.541
Late Application for Appraisal as Agricultural Land
23.551
Additional Notice to Certain Landowners
23.751
Late Application for Appraisal as Timber Land
23.765
Oil and Gas Operations on Land
23.1211
Temporary Production Aircraft
23.1241
Dealer’s Heavy Equipment Inventory
23.1242
Prepayment of Taxes by Heavy Equipment Dealers
23.1243
Refund of Prepayment of Taxes on Fleet Transaction
23.9801
Definitions
23.9802
Qualification for Appraisal as Restricted-use Timber Land
23.9803
Appraisal of Qualified Restricted-use Timber Land
23.9804
Application
23.9805
Action on Application
23.9806
Application Denial Based on Zone Location
23.9807
Change of Use of Land
23.9808
Oil and Gas Operations on Land

Accessed:
Mar. 23, 2024

§ 23.46’s source at texas​.gov