By: Murr H.B. No. 81       A BILL TO BE ENTITLED   AN ACT   relating to the calculation of net to land in the appraisal of   open-space land for ad valorem tax purposes.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Section 23.51(4), Tax Code, is amended to read as   follows:                (4)  "Net to land" means the average annual net income   derived from the use of open-space land that would have been earned   from the land during the five-year period preceding the year before   the appraisal by an owner using ordinary prudence in the management   of the land and the farm crops or livestock produced or supported on   the land and, in addition, any income received from hunting or   recreational leases. The chief appraiser shall calculate net to   land by considering the income that would be due to the owner of the   land under cash lease, share lease, or whatever lease arrangement   is typical in that area for that category of land, and all expenses   directly attributable to the agricultural use of the land by the   owner shall be subtracted from this owner income and the results   shall be used in income capitalization. In calculating net to land,   a reasonable deduction shall be made for any depletion that occurs   of underground water used in the agricultural operation.  In this   subdivision, "wildlife or livestock disease or pest area" means an   area designated by a state agency as an area in which a disease or   pest that affects wildlife or livestock exists or may exist,   including a chronic wasting disease containment or surveillance   zone and an area subject to a quarantine authorized by Subtitle C,   Title 6, Agriculture Code. In calculating net to land of open-space   land located in or adjacent to a wildlife or livestock disease or   pest area, the chief appraiser shall take into consideration the   effect that the presence of the applicable disease or pest or the   designation of the area has on the net income from the land. For   land that qualifies under Subdivision (7) for appraisal under this   subchapter, the chief appraiser may not consider in the calculation   of net to land the income that would be due to the owner under a   hunting or recreational lease of the land.          SECTION 2.  The change in law made by this Act applies only   to the appraisal of open-space land for a tax year that begins on or   after the effective date of this Act.          SECTION 3.  This Act takes effect January 1, 2022.