HB3370

Regular Session

Relating to late applications for the appraisal of land for ad valorem tax purposes as qualified timber land following the death of the owner of the land.

LowStandard timeline

Low Cost

Effective:2026-01-01

Enforcing Agencies

County Appraisal Districts • Chief Appraisers

Compliance Analysis

Key implementation requirements and action items for compliance with this legislation

Implementation Timeline

Effective Date: January 1, 2026
Compliance Deadline: Protocols must be updated by the effective date. The operational deadline for utilizing this relief is the tax delinquency date (typically February 1 of the year following the tax year).
Agency Rulemaking: The Texas Comptroller is not explicitly required to issue new rules, but Form 50-167 (Application for 1-d-1 Timber Land Appraisal) may be updated to include a checkbox for "Section 23.751(a-1) Late Filing." Expect CADs to operate with internal guidance until the Comptroller standardizes the verification process.

Immediate Action Plan

Audit Client List: Identify all timber land clients aged 75+ and ensure their files contain updated contact information for next-of-kin or designated fiduciaries.
Update Checklists: Modify "Deceased Client" workflows to include a specific step: "Check for Timber Exemption Filing Deadline."
Draft Template Letter: Create a standard cover letter for CADs citing Texas Tax Code Section 23.751(a-1) to accompany any late filings, preemptively arguing against the assessment of the 10% penalty.
Calendar the Effective Date: Ensure your tax software is updated to recognize the January 1, 2026 start date; filings submitted before this date are subject to current law and penalties.

Operational Changes Required

Contracts

Legal Engagement Letters: Estate planning and probate attorneys must revise engagement letters to clarify that while the April 30 filing deadline is soft for decedent estates under this law, the delinquency date is a hard stop for penalty waivers.
Property Management Agreements: Review indemnification clauses with timber managers. If a manager misses the standard April 30 deadline due to an owner's death, they are no longer liable for the 10% penalty, provided they cure the filing before the delinquency date.

Hiring/Training

Intake Protocols: Train tax agents and estate administrators to immediately verify the date of death for any new succession file. If the death occurred in the preceding tax year, the file must be flagged for "Penalty Waiver Eligibility."
Staff Training: Junior associates must be trained to distinguish between a standard "Late Application" (subject to 10% penalty) and a "Post-Mortem Late Application" (penalty-free).

Reporting & Record-Keeping

Documentation: To trigger the waiver, you must submit:
1. Form 50-167: The standard timber appraisal application.
2. Proof of Death: Certified death certificate showing death in the preceding tax year.
3. Proof of Capacity: Letters Testamentary or documentation proving status as a surviving spouse, child, or fiduciary.
Calendar Updates: CRM systems must track the "Delinquency Date" (Feb 1) as the absolute final deadline for these specific files, rather than the standard late-filing deadline.

Fees & Costs

Penalty Elimination: The 10% penalty on the difference between market tax and timber tax is eliminated for eligible applicants.
Budget Impact: Positive. This prevents significant tax leakage during estate administration.

Strategic Ambiguities & Considerations

Definition of "Surviving Child": The statute does not explicitly define "child." CADs may attempt to reject applications from step-children or unadopted foster children. Be prepared to provide Estates Code definitions to support these filings.
Scope of "Fiduciary": While executors are clear, agents acting under a Power of Attorney for a surviving spouse may face scrutiny. Ensure POAs explicitly grant authority to handle ad valorem tax matters to satisfy strict CAD interpretations.
Partial Interest Transfers: It is unclear how CADs will treat undivided interests where only one owner died. CADs may attempt to apply the penalty waiver only to the decedent's percentage of the tax bill, rather than the entire tract.

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Legislative Timeline

This bill's path through the Texas Legislature

TopicsAgriculture Taxation Taxation--property-appraisals & Appraisal Districts Taxation--property-exemptions Timber & Timberland

Official Analysis

View HRO Analysis View All Bill Documents

BILL ANALYSIS

H.B. 3370

By: Ashby

Ways & Means

Committee Report (Unamended)

BACKGROUND AND PURPOSE

The bill author has informed the committee that when a timber land owner passes away, a new application for open space or timber land appraisal is required of the inheritor of the timber land property and that in many cases, the inheritor is unaware of the need to make a separate application for open space or timber appraisal that is required for a special appraisal. The bill author has also informed the committee that while the Texas Legislature passed legislation last session revising the process by which an inheritor of a property could continue an agricultural land appraisal, these changes did not apply to timber land properties. H.B. 3370 seeks to resolve this disparity by allowing a surviving spouse, surviving child, executor of the estate of a decedent, or a fiduciary acting on behalf of a surviving spouse or surviving child to file a late application for timber land appraisal without being subject to the penalty for a late application.

CRIMINAL JUSTICE IMPACT

It is the committee's opinion that this bill does not expressly create a criminal offense, increase the punishment for an existing criminal offense or category of offenses, or change the eligibility of a person for community supervision, parole, or mandatory supervision.

RULEMAKING AUTHORITY

It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency, or institution.

ANALYSIS

H.B. 3370 amends the Tax Code to require the chief appraiser of an appraisal district to accept and approve or deny an application for special appraisal as qualified timber land after the deadline for filing the application has passed if the following conditions are satisfied:

·the land that is the subject of the application was appraised as qualified timber land in the preceding tax year;

·the ownership of the land changed as a result of the death of an owner of the land during the preceding tax year; and

·the application is filed not later than the delinquency date for the taxes on the land for the year for which the application is filed by one of the following:

othe surviving spouse or a surviving child of the decedent;

othe executor or administrator of the decedent's estate; or

oa fiduciary acting on behalf of the surviving spouse or a surviving child of the decedent.

The bill exempts such an application that is approved by the chief appraiser from the late application penalty.

H.B. 3370 applies only to an application for special appraisal as qualified timber land that is filed with the chief appraiser of an appraisal district on or after the bill's effective date.

EFFECTIVE DATE

January 1, 2026.

House Authors

Rep. Trent AshbyRepublican · Primary Author

Senate Sponsors

Sen. Robert NicholsRepublican · Primary Sponsor

Cosponsors (1)

Lois Kolkhorst (R)

Bill Text(with markup)

H.B. No. 3370

View bill text in multiple formats on Texas Legislature website

Fiscal NoteView Original

	AN ACT
	relating to late applications for the appraisal of land for ad
	valorem tax purposes as qualified timber land following the death
	of the owner of the land.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
	SECTION 1. Section 23.751, Tax Code, is amended by adding
	Subsection (a-1) and amending Subsection (b) to read as follows:
	(a-1) Notwithstanding Subsection (a), the chief appraiser
	shall accept and approve or deny an application for appraisal under
	this subchapter after the deadline for filing the application has
	passed if:
	(1) the land that is the subject of the application was
	appraised under this subchapter in the preceding tax year;
	(2) the ownership of the land changed as a result of
	the death of an owner of the land during the preceding tax year; and
	(3) the application is filed not later than the
	delinquency date for the taxes on the land for the year for which
	the application is filed by:
	(A) the surviving spouse or a surviving child of
	the decedent;
	(B) the executor or administrator of the estate
	of the decedent; or
	(C) a fiduciary acting on behalf of the surviving
	spouse or a surviving child of the decedent.
	(b) If appraisal under this subchapter is approved when the
	application is filed late, the owner is liable for a penalty of 10
	percent of the difference between the amount of tax imposed on the
	property and the amount that would be imposed if the property were
	taxed at market value. The penalty prescribed by this subsection
	does not apply to a late application filed under Subsection (a-1).
	SECTION 2. The change in law made by this Act applies only
	to an application for appraisal under Subchapter E, Chapter 23, Tax
	Code, that is filed with the chief appraiser of an appraisal
	district on or after the effective date of this Act.
	SECTION 3. This Act takes effect January 1, 2026.

LEGISLATIVE BUDGET BOARD
Austin, Texas

FISCAL NOTE, 89TH LEGISLATIVE REGULAR SESSION


April 1, 2025

TO:	Honorable Morgan Meyer, Chair, House Committee on Ways & Means

FROM:	Jerry McGinty, Director, Legislative Budget Board

IN RE:	HB3370 by Ashby (Relating to late applications for the appraisal of land for ad valorem tax purposes as qualified timber land following the death of the owner of the land.), As Introduced

No fiscal implication to the State is anticipated.

The bill would require the chief appraiser to accept and approve or deny an application for appraisal as timberland after the deadline if the land was appraised as timberland in the preceding year, the ownership of the land changed as a result of death of an owner of the land in the preceding year, the application is filed not later than the delinquency date for taxes on the land, and the application was filed by the surviving spouse or a surviving child, the executor or administrator of the estate, or a fiduciary acting on behalf of the surviving spouse.

Local Government Impact

No significant fiscal implication to units of local government is anticipated.

Source Agencies:

304 Comptroller of Public Accounts

LBB Staff:

JMc, KK, SD, BRI

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Frequently Asked Questions

Common questions about HB3370

What does Texas HB3370 do?

HB3370 mandates that County Appraisal Districts (CADs) accept late timber land appraisal applications without the standard 10% penalty following the death of a property owner, provided the application is filed before the tax delinquency date. This legislation creates a statutory safety net for family-owned forestry operations and estates, preventing the loss of special valuation status during the administrative chaos of succession. Implementation Timeline Effective Date: January 1, 2026 Compliance Deadline: Protocols must be updated by the effective date.

Who authored HB3370?

HB3370 was authored by Texas Representative Trent Ashby during the Regular Session.

When was HB3370 signed into law?

HB3370 was signed into law by Governor Greg Abbott on June 20, 2025.

Which agencies enforce HB3370?

HB3370 is enforced by County Appraisal Districts and Chief Appraisers.

How urgent is compliance with HB3370?

The compliance urgency for HB3370 is rated as "low". Businesses and organizations should review the requirements and timeline to ensure timely compliance.

What is the cost impact of HB3370?

The cost impact of HB3370 is estimated as "low". This may vary based on industry and implementation requirements.

What topics does HB3370 address?

HB3370 addresses topics including agriculture, taxation, taxation--property-appraisals & appraisal districts, taxation--property-exemptions and timber & timberland.

Legislative data provided by LegiScanLast updated: November 25, 2025

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