Relating to an exemption from ad valorem taxation of a portion of the appraised value of certain land that is located in a priority groundwater management area and is not irrigated.

HB 3935 would create a 35% property tax exemption for landowners in designated priority groundwater management areas (as defined in Texas Water Code) who own non-irrigated land of at least half an acre (excluding areas under structures). The exemption applies to land not subject to other appraisal rules and requires the land to remain non-irrigated. Landowners must qualify under these specific conditions to receive the tax break, which would apply until ownership changes or eligibility ends. The bill's implementation depends on voter approval of a related constitutional amendment, with effective dates set for 2026 if approved.