HBA-AMW S.B. 1272 77(R) BILL ANALYSIS Office of House Bill AnalysisS.B. 1272 By: Bernsen Ways & Means 5/2/2001 Engrossed BACKGROUND AND PURPOSE Current law entitles land used to produce plant or animal products under natural conditions to be designated for agricultural use for ad valorem tax appraisal purposes. Large nurseries located in rural communities in Texas have the potential to supply commercial plant outlets around the country and to help stimulate development in rural communities. However, the land on which these greenhouses are located is not eligible for an agricultural use determination. Senate Bill 1272 entitles a person who owns land in certain counties on which a greenhouse for growing florist items solely for wholesale purposes is located to an agricultural use determination for ad valorem tax appraisal purposes. RULEMAKING AUTHORITY It is the opinion of the Office of House Bill Analysis that this bill does not expressly delegate any additional rulemaking authority to a state officer, department, agency, or institution. ANALYSIS Senate Bill 1272 amends the Tax Code to entitle a person who owns land that is located in a county with a population of 35,000 or less and on which a greenhouse for growing florist items solely for wholesale purposes is located to have the land designated for agricultural use for ad valorem tax appraisal purposes if the land otherwise qualifies for the designation for agricultural use and the person who owns the land is not using it in conjunction with or contiguous to land being used to conduct retail sales of florist items. The bill provides that for appraisal purposes a greenhouse for growing florist items solely for wholesale purposes is an appurtenance to the land. EFFECTIVE DATE January 1, 2002.