SRC-AAA S.B. 1375 75(R) BILL ANALYSIS Senate Research Center S.B. 1375 By: Nixon Finance 4-18-97 As Filed DIGEST Currently, there are two methods of appraising leaseholds, the possessory method and the equity method. The law is ambiguous as to which method appraisal districts are required to use. This bill requires an appraiser to use the equity method to make certain determinations and calculations. PURPOSE As proposed, S.B. 1375 requires an appraiser to use the equity method to make certain determinations and calculations. 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 Section 23.13, Tax Code, to require an appraiser to use the equity method of valuation, when appraising a leasehold or other possessory interest in real property, subject to the limitation provided by Subsection (b). Makes a nonsubstantive and a conforming change. SECTION 2. Effective date: September 1, 1997. SECTION 3. Emergency clause.