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