LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE
75th Regular Session
April 29, 1997
TO: Honorable Tom Craddick, Chair IN RE: House Bill No. 1749
Committee on Ways & Means By: Kuempel
House
Austin, Texas
FROM: John Keel, Director
In response to your request for a Fiscal Note on HB1749 ( Relating
to 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.) this office
has detemined the following:
Biennial Net Impact to General Revenue Funds by HB1749-As Introduced
No significant fiscal implication to the State is anticipated.
FISCAL ANALYSIS
The bill would amend Section 41.413 of the
Tax Code to limit the right of real property lessees who are
contractually obligated to reimburse the property owner for
property taxes to protest the appraised value of the leased
property. Lessees would be allowed to file a protest if not
prohibited by the lease agreement. The bill would limit a lessee's
right to protest to situations when real property is leased
to one lessee. Lessees in multi-tenant properties would not
be allowed to file a protest.
Current law allows a person
that leases property and who is contractually obligated to reimburse
the owner for property taxes to protest the leased property's
value before the Appraisal Review Board (ARB) if the property
owner did not file a protest. A lessee bringing a protest would
be considered the owner of the property for purposes of a protest
and would receive any notices relating to the protest. The
lessee would be allowed to appeal an ARB determination to state
district court with the same rights as the owner.
The bill
would take effect September 1, 1997 and would apply only to
a protest filed 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