BILL ANALYSIS


                                                         S.B. 783
                                                      By: Ratliff
                                                    State Affairs
                                                          4-11-95
                                     Committee Report (Unamended)
BACKGROUND

Some lease agreements provide that the company leasing equipment is
responsible for paying the property taxes on the equipment. 
However, the company leasing the property does not have the
authority to protest the appraised value to the appraisal review
board.  Section 41.41, Tax Code, allows only a property owner or
the owner's agent to protest the appraised value of the property. 
The lessee, who technically owns the property during the lease
contract period, does not have the statutory authority to protest
the value of the equipment being leased.

PURPOSE

As proposed, 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 grant any
additional rulemaking authority to a state officer, institution, or
agency.

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Chapter 41C, Tax Code, by adding Section 41.413,
as follows:

     Sec. 41.413.  PROTEST BY PERSON LEASING PROPERTY.  (a)
     Entitles a person leasing property who is contractually
     obligated to reimburse the property owner for property taxes
     to protest before the appraisal review board (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
       person leasing the property does not affect the time within
       which the person leasing the property may protest the
       appraised value.
SECTION 2. Amends Chapter 42A, Tax Code, by adding Section 42.015,
as follows:

     Sec. 42.015.  APPEAL BY PERSON LEASING PROPERTY.  (a) Entitles
     a person leasing property who is contractually obligated to
     reimburse the owner for property taxes to appeal an order of
     the board determining a protest brought by the person.
     
     (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.
           Effective date: upon passage.