What does land need to qualify as an 'ecological laboratory' for the Texas open-space tax break?

Plain-English summary

Most Texas property is taxed on market value, but the constitution lets open-space land devoted to farm, ranch, or wildlife-management purposes be taxed on its productive capacity, which usually means a much lower bill. The Legislature included in "qualified open-space land" any land used principally as an ecological laboratory by a public or private college or university. State Senator Jeff Wentworth asked the Attorney General what land needs to qualify for that "ecolab" designation, noting that appraisal districts used to rely on a university performance report or letter but that some had stopped doing so.

The opinion explained that the Legislature never defined "ecological laboratory," but the Texas Supreme Court, in upholding the statute against a constitutional challenge, suggested an ecological laboratory must be devoted to furthering farming and ranching purposes for the designation to square with the constitution. For example, studies on preserving and enhancing native grasses for grazing would promote ranching. The statute also requires that the land be used principally as an ecological laboratory by a public or private college or university.

On the procedure, the opinion laid out the path: the landowner must file a valid application with the chief appraiser, on a form adopted by the Comptroller, and the chief appraiser determines each applicant's right to the appraisal separately. The opinion found nothing in the Tax Code requiring a chief appraiser to rely on a university's research plan and annual report to certify the designation, but it also found nothing prohibiting the appraiser from using those documents. A university ecological-laboratory research plan and annual report could support the designation if they prove the land is used as the constitution and statute require. Because the Legislature told chief appraisers to consider the application and all relevant information, the opinion concluded the appraiser must evaluate the application and any additional relevant information to decide whether the designation applies in a given case.

Currency note

This opinion was issued in 2011. Subsequent statutory amendments, court decisions, or later Attorney General opinions may have changed the analysis. Treat this page as historical context, not current legal advice. Verify current law before relying on any specific rule, deadline, or remedy mentioned here.

What the opinion meant for those who asked

Chief appraisers (as the opinion held for them): The opinion told them they were not required to rely on a university research plan and annual report to grant an ecological-laboratory designation, but were free to use those materials, and that they had to evaluate the application and all relevant information to decide each case.

Landowners seeking the ecolab designation (as the opinion described it): Under the opinion, a landowner had to file a valid application with the chief appraiser, and a university research plan and annual report could help support the designation if they showed the land was used as the constitution and statute required.

On the substantive standard (what the opinion drew from the Supreme Court): The opinion noted the Texas Supreme Court had suggested an ecological laboratory must be devoted to furthering farming and ranching purposes for the designation to comply with the constitution.

Common questions

Does an appraiser have to accept a university's ecolab report to grant the tax appraisal?
No. The opinion concluded nothing in the Tax Code requires a chief appraiser to rely on a university research plan and annual report, though the appraiser may use them.

Can a university plan and annual report help qualify land as an ecological laboratory?
Yes. The opinion said those documents could support the designation if they prove the land is used as the constitution and statute require.

How does a landowner apply?
The opinion explained that the owner must file a valid application with the chief appraiser on a Comptroller-adopted form, and the chief appraiser decides each application separately.

What kind of use counts as an ecological laboratory?
The opinion noted the Texas Supreme Court suggested the land must be devoted to furthering farming and ranching purposes, used principally as an ecological laboratory by a public or private college or university.

Background and statutory framework

The Texas Constitution allows open-space land devoted to farm, ranch, or wildlife-management purposes to be taxed on its productive capacity. Tex. Const. art. VIII, § 1-d-1(a); Nootsie, Ltd. v. Williamson Cnty. Appraisal Dist., 925 S.W.2d 659, 661 (Tex. 1996). The Legislature defined "qualified open-space land" to include land used principally as an ecological laboratory by a public or private college or university. Tex. Tax Code Ann. § 23.51(1) (West Supp. 2010). In upholding that provision against a facial challenge, the Texas Supreme Court suggested an ecological laboratory must be devoted to furthering farming and ranching purposes to comply with article VIII, section 1-d-1. Nootsie, 925 S.W.2d at 663.

To have land appraised as an ecological laboratory, the owner must file a valid application with the chief appraiser on a Comptroller-adopted form. Tex. Tax Code Ann. § 23.54(a) (West 2008); 34 Tex. Admin. Code § 9.402 (2011). The chief appraiser determines separately each applicant's right to the appraisal and must consider the application and all relevant information. Tex. Tax Code Ann. § 23.57(a) (West 2008). The opinion concluded the Tax Code neither requires nor prohibits reliance on a university research plan and annual report, leaving the chief appraiser to weigh the application and any additional relevant information.

Citations

Statutes:

• Tex. Const. art. VIII, § 1-d-1(a)
• Tex. Tax Code Ann. § 23.51(1) (West Supp. 2010)
• Tex. Tax Code Ann. § 23.54(a) (West 2008)
• Tex. Tax Code Ann. § 23.57(a) (West 2008)
• 34 Tex. Admin. Code § 9.402 (2011)

Cases:

• Nootsie, Ltd. v. Williamson Cnty. Appraisal Dist., 925 S.W.2d 659, 661 (Tex. 1996)

Source

• Landing page: https://www.texasattorneygeneral.gov/opinions/greg-abbott/ga-0861
• Original PDF: https://www.texasattorneygeneral.gov/sites/default/files/opinion-files/opinion/2011/ga0861.pdf

Original opinion text

Best-effort transcription from the official PDF. Minor extraction artifacts were corrected; the linked PDF is authoritative.

ATTORNEY GENERAL OF TEXAS
GREG ABBOTT

May 27, 2011

The Honorable Jeff Wentworth Opinion No. GA-0861
Chair, Select Committee on
Open Government Re: Requirements for real property to qualify as
Texas State Senate an "ecological laboratory" under section 23.51,
Post Office Box 12068 Tax Code (RQ-0934-GA)
Austin, Texas 78711-2068

Dear Senator Wentworth:

You ask whether land qualifies as "an ecological laboratory, as this term is used in ... Tax Code Section 23.51, if a university outlines and implements an ecological laboratory research plan for the property and produces a related annual report[.]"[1]

While most Texas real property is taxed based on market value, the Texas Constitution allows for open-space land devoted to farm, ranch, or wildlife management purposes to be taxed based on its "productive capacity." TEX. CONST. art. VIII, § 1-d-1(a); Nootsie, Ltd. v. Williamson Cnty. Appraisal Dist., 925 S.W.2d 659, 661 (Tex. 1996). The Legislature has defined "qualified open-space land" to include, among other things, "land that is used principally as an ecological laboratory by a public or private college or university." TEX. TAX CODE ANN. § 23.51(1) (West Supp. 2010). You explain that appraisal districts have historically designated land as an ecological laboratory "based on a property-specific ecolab performance report or letter from a university," but that some appraisal districts "no longer maintain this practice." Request Letter at 1. You therefore ask what the requirements are for land "to be certified as exempt under the ecolab designation." Id.

The Legislature has not provided a definition for the term ecological laboratory. However, in upholding the constitutionality of Tax Code subsection 23.51(1) against a facial challenge, the Texas Supreme Court suggested that an ecological laboratory must be "devoted to the furtherance of farming and ranching purposes" in order for an ecological laboratory designation to comply with Texas Constitution article VIII, section 1-d-1. Nootsie, 925 S.W.2d at 663 (suggesting that studies concerning the preservation and enhancement of native grasses for grazing purposes would promote ranching and therefore qualify). The statute requires that to obtain an ecological laboratory designation, the land must be used "principally" for that purpose "by a public or private college or university." TEX. TAX CODE ANN. § 23.51(1) (West Supp. 2010).

To have land appraised as an ecological laboratory, the owner of the land "must file a valid application with the chief appraiser," using a form "adopted by the Comptroller of Public Accounts." Id. § 23.54(a) (West 2008) ("Application"); 34 TEX. ADMIN. CODE § 9.402 (2011). "The chief appraiser shall determine separately each applicant's right to have his land appraised" as an ecological laboratory. TEX. TAX CODE ANN. § 23.57(a) (West 2008) ("Action on Applications"). We find nothing in the Tax Code to suggest that the research plans and annual reports to which you refer must be used by an appraiser to certify such a designation. However, nothing in the Tax Code prevents a chief appraiser from using those documents to grant an ecological laboratory exemption. A university ecological laboratory research plan and related annual report could support an ecological laboratory designation if they prove that the land is used as constitutionally and statutorily required. The Legislature has instructed chief appraisers to consider "the application and all relevant information" before determining whether land qualifies for the exemption. Id. § 23.57(a). Thus, the chief appraiser must evaluate the claimant's application and any additional relevant information to determine whether the designation will apply in a specific instance.

SUMMARY

Nothing in the Tax Code suggests that a chief appraiser is required to rely upon a university ecological laboratory research plan and related annual report to qualify land as an ecological laboratory under Tax Code section 23.51. However, nothing in the Tax Code prohibits the chief appraiser from relying on these materials to make his determination. The chief appraiser must evaluate the claimant's application and any additional relevant information to determine whether the designation will apply in a specific instance.

Very truly yours,

GREG ABBOTT
Attorney General of Texas

DANIEL T. HODGE
First Assistant Attorney General

DAVID J. SCHENCK
Deputy Attorney General for Legal Counsel

JASON BOATRIGHT
Chair, Opinion Committee

Virginia K. Hoelscher
Assistant Attorney General, Opinion Committee

[1] Letter from Honorable Jeff Wentworth, Chair, Select Committee on Open Government, Texas Senate, to Honorable Greg Abbott, Attorney General of Texas at 2 (Nov. 23, 2010), https://www.oag.state.tx.us/opin/index_rq.shtml ("Request Letter").