By Jackson                                            H.B. No. 1744
                                 A BILL TO BE ENTITLED
    1-1                                AN ACT
    1-2  relating  to the appraisal of signs for ad valorem tax purposes.
    1-3        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-4        SECTION 1.  Subchapter B, Chapter 23, Tax Code, is amended by
    1-5  adding Section 23.145 to read as follows:
    1-6        Sec. 23.145.  SIGNS.  (a)  Except as provided in Subsection
    1-7  (d), the appraised value of a sign, including an on-premise sign or
    1-8  an off-premise sign, is determined by:
    1-9              (1)  determining the replacement or reproduction cost
   1-10  of the sign;
   1-11              (2)  calculating the amount of that cost lost to
   1-12  depreciation; and
   1-13              (3)  subtracting the depreciation from the cost.
   1-14        (b)  The appraised value of a sign may not include an amount
   1-15  attributable to an intangible property interest.
   1-16        (c)  In this section, "sign," "off-premise sign," and
   1-17  "on-premise sign" have the meanings assigned those terms by Section
   1-18  216.002, Local Government Code.
   1-19        (d)  Permanent on-site signs shall be appraised at their
   1-20  contributory value to the improvements.
   1-21        SECTION 2.  This Act takes effect January 1, 1996.  The
   1-22  change in law made by this Act applies only to an appraisal of a
   1-23  sign for ad valorem tax purposes for a tax year that begins on or
   1-24  after the effective date of this Act.  The appraisal of a sign for
    2-1  ad valorem tax purposes for a tax year that began before the
    2-2  effective date of this Act is governed by the law in effect when
    2-3  the appraisal of the sign was made, and the former law is continued
    2-4  in effect for that purpose.
    2-5        SECTION 3.  The importance of this legislation and the
    2-6  crowded condition of the calendars in both houses create an
    2-7  emergency and an imperative public necessity that the
    2-8  constitutional rule requiring bills to be read on three several
    2-9  days in each house be suspended, and this rule is hereby suspended.