Relating to the eligibility of land to continue to be appraised for ad valorem tax purposes as qualified open-space land following a transfer to a person who uses the land in materially the same way as the former owner and to late applications for such appraisal filed by the new owner of the land.

Contracts

• Asset Purchase Agreements (APAs): For land transfers intended to retain Ag status, insert clauses requiring the Seller’s operational personnel (ranch managers, lessees) to remain in place for a defined period post-closing to satisfy the "same individual" statutory requirement.
• Lease Agreements: Ensure agricultural leases survive the transfer of the underlying land. The lessee is often the "individual" conducting the use; losing the tenant upon transfer could void this specific penalty relief.

Hiring/Training

• Tax Teams: Train staff to calculate the new extended deadline for eligible transfers: the later of the tax delinquency date (usually Feb 1) or the one-year anniversary of the transfer.
• Accounts Payable: Instruct staff to flag any 2026+ tax bill containing a 10% late-filing penalty on transferred land. These penalties are now illegal under HB1244 conditions and must be protested.

Reporting & Record-Keeping

• Proof of Continuity: You must generate and retain evidence that the *same individuals* are overseeing the land. Maintain pre- and post-transfer personnel rosters, management contracts, or affidavits from lessees.
• Usage Logs: Document the "intensity of use" (e.g., head of cattle, crop acreage) before and after the transfer to prove operations are "materially the same."

Fees & Costs

• Penalty Waiver: The mandatory penalty equal to 10% of the difference between the tax imposed and the tax that would have been imposed (Sec. 23.541(b)) is eliminated for eligible transfers.
• Budget Impact: Positive. Reduces reserve requirements for potential tax liabilities during entity restructuring.