By Jackson                                            H.B. No. 1614

                                A BILL TO BE ENTITLED

 1-1                                   AN ACT

 1-2     relating to the appraisal of signs for ad valorem tax purposes.

 1-3           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

 1-4           SECTION 1.  Subchapter B, Chapter 23, Tax Code, is amended by

 1-5     adding Section 23.145 to read as follows:

 1-6           Sec. 23.145.  SIGNS.  (a)  The appraised value of a sign,

 1-7     including an on-premise sign or an off-premise sign, is determined

 1-8     by:

 1-9                 (1)  determining the replacement or reproduction cost

1-10     of the sign;

1-11                 (2)  calculating the amount of that cost lost to

1-12     depreciation; and

1-13                 (3)  subtracting the depreciation from the cost.

1-14           (b)  The appraised value of a sign may not include an amount

1-15     attributable to an intangible property interest.

1-16           (c)  In this section, "sign," "off-premise sign," and

1-17     "on-premise sign" have the meanings assigned those terms by Section

1-18     216.002, Local Government Code.

1-19           SECTION 2.  This Act takes effect January 1, 1998.  The

1-20     change in law made by this Act applies only to an appraisal of a

1-21     sign for ad valorem tax purposes for a tax year that begins on or

1-22     after the effective date of this Act.  The appraisal of a sign for

1-23     ad valorem tax purposes for a tax year that began before the

1-24     effective date of this Act is governed by the law in effect when

 2-1     the appraisal was made, and the former law is continued in effect

 2-2     for that purpose.

 2-3           SECTION 3.  The importance of this legislation and the

 2-4     crowded condition of the calendars in both houses create an

 2-5     emergency and an imperative public necessity that the

 2-6     constitutional rule requiring bills to be read on three several

 2-7     days in each house be suspended, and this rule is hereby suspended.