Texas Comptroller Manual of Accounts - Fiscal 2025
Expenditure Object 7355 – Intangible Assets - Land Use Rights - Term - Expensed

To record payment for the purchase of land use rights that have a useful life limited to periods for which service capacity is expected to exist. Total cost must be less than $100,000. This code should not be used to record the purchase of land that inherently includes land use rights.

This code includes, but is NOT limited to:

• Easements - An easement gives one party the right to use the land of another party for a particular or stated purpose.
• Mineral rights - Mineral rights represent ownership interest in natural resources such as coal, oil, natural gas, and other precious and non-precious metals which are normally extracted from the ground.
• Timber rights - Timber rights permit one party to cut and remove trees from the property of another party.
• Development rights - Development rights represent legal entitlement and ability to develop and improve a parcel of land.
• Water rights - Water rights usually confer upon the owner of riverfront or shorefront property the right to access and use the adjacent water.

Expenditure code 7355 includes, but is NOT limited to:

• Development Rights - Term-Expensed
• Easements - Term-Expensed
• Mineral Rights - Term-Expensed
• Timber Rights - Term-Expensed
• Water Rights - Term-Expensed

This code does NOT include:

• Intangible Assets-Land Use Rights-Permanent-Capitalized (7349)
• Real Property-Land-Highway Right-of-Way- Capitalized (7348)
• Real Property-Land-Capitalized (7345)
• Real Property-Land Improvements-Capitalized (7346)
• Real Property-Infrastructure/Preservation Costs-Capitalized (7357)
• Real Property-Facilities and Other Improvements - Capital Lease (7337)