LEGISLATIVE BUDGET BOARD
                          Austin, Texas

                           FISCAL NOTE
                       74th Regular Session

                          April 3, 1995



 TO:     Honorable Ken Armbrister, Chair        IN RE:  Senate Bill No. 783
         Committee on State Affairs                     By: Ratliff
         Senate
         Austin, Texas






FROM: John Keel, Director

In response to your request for a Fiscal Note on Senate Bill No.
783 (Relating to the right of a person leasing property to
administrative and judicial review of a determination of the
appraised value of the property for ad valorem taxation.) this
office has determined the following:

The bill would allow a person leasing property, who is
contractually obligated to reimburse the owner for ad valorem
taxes, to protest the leased property's value before the
Appraisal Review Board (ARB), if the property owner does not file
a protest.  A lessee bringing a protest would be considered the
owner of the property for purposes of the protest and would
receive any notices relating to the protest.  The bill would
further allow the lessee to appeal an ARB determination to state
district court with the same rights as the owner.

The Comptroller's Property Tax Division does not receive or
maintain information on property ownership and leasing
arrangements.

 The Property Tax Division conducts an annual survey of Texas
county appraisal districts.  The current results published in the
1993-94 "Appraisal District Operations Survey"  indicates that
436,501 taxpayer protest were filed in 1993.  The number of
protests potentially involving leased property cannot be
determined.  However, if 100,000 protest were filed at a cost to
the appraisal district of $10 each, the administrative expenses
of the districts would increase by $1,000,000.  This expense
would be passed through to the taxing units in the district,
including school districts.    




 Passage of this bill could also cause a change in school
district property values.  Changes in school district property
wealth could have an impact on state funding for public
education.


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


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