Relating to the appraisal for ad valorem tax purposes of certain land on the basis of the land's productivity value when a portion of the land is taken for a right-of-way through an exercise of the power of eminent domain.

SB 1546 ensures that Texas farmland owners whose land is partially taken for public projects (like roads or utilities) via eminent domain can maintain the lower agricultural property tax rate on the remaining land. Specifically, it clarifies that the agricultural tax appraisal status does not end if a portion of the land is taken for a right-of-way, as long as the remaining land qualifies for agricultural appraisal. This prevents property tax increases on the unaffected portion of farmland after partial takings, applying to all qualifying agricultural land regardless of the size of the taken area. The bill takes effect January 1, 2026, affecting agricultural landowners across Texas.