BILL ANALYSIS



S.B. 783
By: Ratliff (Kuempel)
May 15, 1995
Committee Report (Amended)


BACKGROUND

Section 41.41, Tax Code, allows a property owner or the owner's
agent to protest the appraised value of property for ad valorem tax
purposes.  However, some lease agreements provide that the lessee
is responsible for paying the property taxes.  These lessees do not
have the authority to protest a determination of appraised value or
appeal an order of the board.

PURPOSE

S.B. 783 authorizes a person leasing property who is required to
reimburse the property owner for property taxes to protest or
appeal an order of the appraisal review board.

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 Chapter 41, Subchapter C, Tax Code, by adding
           Section 41.413 PROTEST BY PERSON LEASING PROPERTY.  

           (a) Entitles a lessee who is contractually obligated to
           reimburse the property owner for property taxes to
           protest before the appraisal review board a
           determination of the property's value if the owner does
           not file a protest.

           (b) Provides that a person bringing a protest is
           considered the property owner for purposes of the
           protest.  Requires the board to deliver a copy of any
           notice relating to the protest and of the order
           determining the protest to the property owner and the
           person bringing the protest.

           (c) Requires the property owner to send to the person
           leasing the property a copy of any notice of the
           property's reappraisal.  Failure of the owner to send
           a copy to the lessee does not affect the time within
           which the lessee may protest the appraised value.

SECTION 2.     Amends Chapter 42, Subchapter A, Tax Code, by
               adding Section 42.015 APPEAL BY PERSON LEASING
               PROPERTY.

           (a) Entitles a lessee who is contractually obligated to
           reimburse the owner for property taxes to appeal an
           order of the board determining a protest brought by the
           lessee. 

           (b) Provides that a person appealing a board order is
           considered the owner of the property for purposes of the
           appeal.  Requires the chief appraiser to deliver a copy
           of any notice relating to the appeal to the property
           owner and to the person bringing the appeal.

SECTION 3. Emergency Clause.

EXPLANATION OF AMENDMENTS

COMMITTEE AMENDMENT #1: provides that the treatment of tangible
personal property is different from real property in that protests
on real property are limited to 1 by either the property owner or
the lessee.

SUMMARY OF COMMITTEE ACTION

Public notice was posted in accordance with the rules, and a public
hearing was held on May 9, 1995.  The chair laid out S.B. 783, and
recognized Representative Kuempel to explain the bill.  The
committee considered amendment #1 by Representative Marchant. 
Without objection, the committee adopted amendment #1.  By a record
vote of 8 ayes, 0 nays, 0 present not voting and 3 absent, the
committee voted to report S.B. 783 to the House with amendment with
the recommendation that it be sent to the Local & Consent Calendar,
and that it do pass.

     Testimony received against the bill:
           Foy Mitchell, Jr. representing the Dallas Central
           Appraisal District