HB 289: Changes to Texas Farm and Land Tax Rules -- Policy -- Community Exchange

Plain language summary

Texas bill that changes how farmers and land owners qualify for lower property tax rates on their land.

HB 289 changes how Texas values farmland and other special-use land for property taxes. The bill removes some old rules that made it harder for landowners to get lower tax rates. This helps people who farm, raise animals, or protect land keep more money.

One major change is about agricultural land. Owners can now qualify for special farm tax rates more easily. The bill also changes the rules for "qualified open-space land," which includes pastures and ranches. Instead of proving the land was used for farming for five of the last seven years, owners now just need to show the land is currently being used for agriculture or wildlife management.

Wildlife management gets a boost too. The bill says land used for protecting endangered species or for hunting and conservation can qualify for lower tax rates. Landowners no longer have to prove the land was previously taxed as a farm—they just need to show it is actively managed for wildlife now.

The bill also changes the rules about what happens when someone changes how they use their land or sells it. The new law removes extra taxes in some situations where the old rules would have charged more. This gives landowners more flexibility without big tax penalties.

These changes take effect September 1, 2025. Landowners should check with their county tax assessor to see if their land qualifies for these new lower rates.