BILL ANALYSIS



H.B. 2609
By: Craddick
03-29-95
Committee Report (Unamended)


BACKGROUND

Section 23.01, Tax Code, establishes that all taxable property is
appraised at its market value, as determined by the applications of
generally accepted appraisal techniques, however, each property
shall be appraised based upon the individual characteristics that
affect the property's market value.  Section 21.041, Property Code,
establishes the guidelines for evidence of damages and costs in
eminent domain cases.  As the basis for assessing actual damages to
a property owner from a condemnation, the special commissioners
shall admit evidence on: (1) the value of the property; (2) the
injury to the property owner; (3) the benefit to the property
owner's remaining property; and (4) the use of the property for the
purpose of the condemnation.

In State v. Schmidt 867 S.W.2d 769 (Tex. 1993), the Texas Supreme
Court, raised questions concerning the determination of market
value in the condemnation arena.  Specifically, the Court indicated
that in determining the decrease in market value to a condemnee's
remaining property following from a condemnation, market value
should not include consideration of factors such as visibility and
accessibility.
PURPOSE

This bill establishes additional guidelines for assessing property
(i.e. location, visibility, accessibility, and highest and best
use) for ad valorem tax purposes.  It also requires a government
unit to consider the same criteria to determine damages to a
property owner during a condemnation.

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.

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Section 23.01 (Appraisals Generally), Subsection
           (b), Tax Code, to include the property's location,
           visibility, and highest and best use, and the access to
           and from the property when determining market value.

SECTION 2. Amends Section 21.041 (Evidence), Property Code, to
           include the property's location, visibility, and highest
           and best use and, the access to and from the property
           as evidence for assessing actual damages to a property
           owner from a condemnation.

SECTION 3. Effective Date:  September 1, 1995.

SECTION 4. Emergency Clause.

SUMMARY OF COMMITTEE ACTION

Public notice was posted in accordance with the rules, and a public
hearing was held on March 28, 1995.  Representative Craddick
explained the bill.  By a record vote of 7 ayes, 0 nays, 0 present
not voting and 4 absent, the committee voted to report H.B. 2609 to
the House without amendment with the recommendation that it be sent
to the Local & Consent Calendar, and that it do pass.

     Testimony received in favor of the bill:
           James A. McAlister, representing himself
           John Prather, representing himself