SRC-TNM S.B. 1423 75(R)   BILL ANALYSIS


Senate Research Center   S.B. 1423
By: Ratliff
Intergovernmental Relations
3-23-97
As Filed


DIGEST 

Currently, a person leasing property has the right to protest the
appraised value of the property to the appraisal board if that person is
obligated to reimburse the owner for taxes.  Representatives of the office
building industry, the shopping center industry, and professional property
managers are now concerned that this statute will be interpreted to apply
to multi-tenant properties, when it was only intended to apply to
single-tenant properties.  S.B. 1423 would clarify that a lessee tax
protest only applies to a single-tenant situation. 
 
PURPOSE

As proposed, S.B. 1423 outlines provisions regarding the right of certain
lessees of real property to protest before an appraisal review board a
determination of the appraised value of the property for ad valorem tax
purposes. 

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 41.413(b), Tax Code, to provide that a person
leasing rental property who is contractually obligated to reimburse the
property owner for taxes imposed on the property is entitled to protest
before the appraisal review board a determination of the appraised value
of the property if the lease does not prohibit the person from filing a
protest relating to the property and the property owner does not file a
protest relating to the property.  Provides that this subsection applies
only to real property leased to one lessee and does not apply to a
multi-tenant property. 

SECTION 2. Makes application of this Act prospective.

SECTION 3. Effective date: September 1, 1997.

SECTION 4. Emergency clause.