SRC-HRD H.B. 1614 75(R)   BILL ANALYSIS


Senate Research Center   H.B. 1614
By: Jackson (Patterson)
Finance
5-2-97
Engrossed


DIGEST 

Chapter 23, Tax Code, provides for appraisal methods and procedures for
property tax purposes. Section 23.01 requires all taxable property to be
appraised at its market value as determined by the application of
generally accepted  appraisal techniques, and the same or similar
appraisal techniques to be used in appraising the same or similar kinds of
property.  Generally accepted appraisal technique requires an appraiser to
apply all applicable approaches to value (market, income, or cost).
Current law allows the appraisal of signs and billboards to use all
applicable techniques.  Some counties appraise signs or billboards based
on the potential income derived from the location of a sign or billboard.
This bill would provide that the appraised value of a sign be calculated
from the cost of replacement or reproduction cost of the sign. 

PURPOSE

As proposed, H.B. 1614 sets forth the formula by which the appraised value
of signs is determined.                                               
RULEMAKING AUTHORITY

This bill does not grant any additional rulemaking authority to a state
officer, institution, or agency. 

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Chapter 23B, Tax Code, by adding Section 23.145, as
follows: 

Sec. 23.145.  SIGNS.  Provides that the appraised value of a sign,
including an on-premise sign or an off-premise sign, is determined by:
determining the replacement or reproduction cost of the sign; calculating
the amount of that cost lost to depreciation; and subtracting the
depreciation from the cost.  Prohibits the appraised value of the sign
from including an amount attributable to an intangible property interest.
Defines "sign," "off-premise sign," and "on-premise sign." 

SECTION 2. Effective date:  January 1, 1998.
  Makes application of this Act prospective.  

SECTION 3. Emergency clause.