LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE 75th Regular Session March 18, 1997 TO: Honorable Tom Craddick, Chair IN RE: House Bill No. 1614 Committee on Ways & Means By: Jackson House Austin, Texas FROM: John Keel, Director In response to your request for a Fiscal Note on HB1614 ( Relating to the appraisal of signs and related property for ad valorem tax purposes.) this office has detemined the following: Biennial Net Impact to General Revenue Funds by HB1614-As Introduced No significant fiscal implication to the State is anticipated. The bill would amend Chapter 23 of the Tax Code to require that, for property tax purposes, signs be appraised on the basis of their replacement cost less the amount of that cost lost to depreciation. In addition, the appraised value of land on which an off-premise sign is located could not include any amount attributable to the value of the sign or to the location of the sign on the land. Current law requires all taxable property to be appraised at its market value as of January 1, and that market value be determined by application of generally accepted appraisal techniques. The bill would take effect January 1, 1998 and would only apply to an appraisal of a sign or other property for ad valorem tax purposes for a tax year that would begin on or after the effective date. No significant fiscal implication to units of local government is anticipated. Source: Agencies: 304 Comptroller of Public Accounts LBB Staff: JK ,RR ,BR