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