LEGISLATIVE BUDGET BOARD
                          Austin, Texas

                           FISCAL NOTE
                       74th Regular Session

                          March 21, 1995



 TO:     Honorable Tom Craddick, Chair          IN RE:  House Bill No. 1744
         Committee on Ways & Means                      By: Jackson
         House of Representatives
         Austin, Texas






FROM: John Keel, Director

In response to your request for a Fiscal Note on House Bill No.
1744 (Relating to the appraisal of signs for ad valorem tax
purposes.) this office has determined the following:

The bill would require that signs be appraised, for property tax
purposes, by means of the cost approach to value.  The cost
approach establishes value based on the amount it would cost to
replace a property with one of equal utility.

The bill would also require the Comptroller to adopt a manual for
the appraisal of signs and distribute to each appraisal district
a copy of the sign appraisal manual.  Appraisal districts would
be required to use the manual in appraising signs.

Current law requires all taxable property to be appraised at its
market value as of January 1, and that the market value be
determined by application of generally accepted appraisal
techniques.  Generally accepted appraisal technique requires an
appraiser to apply all applicable approaches to value (market,
income, and cost).  Limiting the appraisal of signs to only the
cost approach could result in over or under appraisal in
different circumstances.


No significant fiscal implication to the State is anticipated.

The fiscal implication to  units of local government cannot be
determined.    




Source:   Comptroller of Public Accounts
          LBB Staff: JK, BR, DF