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.