Relating to the requirement that a person submit an application for an exemption from ad valorem taxation for certain property used for human burial.

Contracts

• Purchase and Sale Agreements (PSAs): For closings scheduled on or after January 1, 2026, amend tax proration clauses. Do not escrow funds for ad valorem taxes on parcels identified as abandoned cemeteries with unidentifiable owners.
• Title Work: Ensure legal counsel reviews title commitments to distinguish between a *tax exemption* and a *title defect*. An automatic exemption confirms the "unidentifiable" ownership status, which may complicate clearing title for development.

Hiring/Training

• Tax Consultants: In-house tax teams must be trained to stop filing Form 50-114 (Application for Cemetery Exemption) for these specific parcels. Filing the form admits ownership, which triggers unrelated maintenance liabilities under the Health and Safety Code.

Reporting & Record-Keeping

• Verification Evidence: While the application requirement is removed, you must maintain a "Cemetery Verification File." This includes geolocated photographs of headstones, fencing, or markers to satisfy the "reasonable inspection" standard if the Chief Appraiser challenges the land's use.
• Notice Letters: Replace the formal exemption application with a "Notice of Existence" letter to the Appraisal District to trigger their statutory duty to inspect.

Fees & Costs

• Tax Savings: Elimination of tax liability for qualifying parcels starting Tax Year 2026.
• Sunk Costs: No refunds available for taxes paid on these parcels for Tax Year 2025 or prior.