By Jackson                                      H.B. No. 1614

      75R5993 JD-D                           

                                A BILL TO BE ENTITLED

 1-1                                   AN ACT

 1-2     relating to the appraisal of signs and related property for ad

 1-3     valorem tax purposes.

 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

 1-5           SECTION 1.  Subchapter B, Chapter 23, Tax Code, is amended by

 1-6     adding Section 23.145 to read as follows:

 1-7           Sec. 23.145.  SIGNS.  (a)  Except as provided by Subsection

 1-8     (c), the appraised value of a sign, including an on-premise sign or

 1-9     an off-premise sign, is determined by:

1-10                 (1)  determining the replacement or reproduction cost

1-11     of the sign;

1-12                 (2)  calculating the amount of that cost lost to

1-13     depreciation; and

1-14                 (3)  subtracting the depreciation from the cost.

1-15           (b)  The appraised value of a sign may not include an amount

1-16     attributable to an intangible property interest.

1-17           (c)  A permanent on-premise sign shall be appraised at its

1-18     contributory value to the premises where the sign is located.  The

1-19     appraised value of land on which an off-premise sign is located may

1-20     not include any amount attributable to the value of the sign or to

1-21     the location of the sign on the land.

1-22           (d)  In this section, "sign," "off-premise sign," and

1-23     "on-premise sign" have the meanings assigned those terms by Section

1-24     216.002, Local Government Code.

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

 2-2     change in law made by this Act applies only to an appraisal of a

 2-3     sign or other property for ad valorem tax purposes for a tax year

 2-4     that begins on or after the effective date of this Act.  The

 2-5     appraisal of a sign or other property for ad valorem tax purposes

 2-6     for a tax year that began before the effective date of this Act is

 2-7     governed by the law in effect when the appraisal was made, and the

 2-8     former law is continued in effect for that purpose.

 2-9           SECTION 3.  The importance of this legislation and the

2-10     crowded condition of the calendars in both houses create an

2-11     emergency and an imperative public necessity that the

2-12     constitutional rule requiring bills to be read on three several

2-13     days in each house be suspended, and this rule is hereby suspended.