LEGISLATIVE BUDGET BOARD
                                   Austin, Texas
         
                                   FISCAL NOTE
                               75th Regular Session
         
                                  April 23, 1997
         
         
      TO: Honorable Tom Craddick, Chair            IN RE:  House Bill No. 2808
          Committee on Ways & Means                              By: Edwards
          House
          Austin, Texas
         
         
         
         
         FROM:  John Keel, Director    
         
In response to your request for a Fiscal Note on HB2808 ( Relating 
to limits on attorney's fees in certain ad valorem tax appeals 
of real property.) this office has detemined the following:
         
         Biennial Net Impact to General Revenue Funds by HB2808-As Introduced
         
No fiscal implication to the State is anticipated.
         

         
 
FISCAL ANALYSIS
The bill would amend Chapter 42 of the Tax 
Code to remove one limitation on the amount of attorney's fees 
that could be awarded to a property taxpayer who prevailed in 
a lawsuit to challenge over-appraisal or unequal appraisal.

Currently, 
the award may not exceed the greater of $15,000 or 20 percent 
of the total amount by which the taxpayer's tax liability is 
reduced.  In no case, however, may the award of attorney's fees 
exceed the total amount by which the property owner's tax liability 
is reduced.  The bill would remove the provision limiting recovery 
of attorney's fees to the total amount by which the owner's 
tax liability is reduced.

The bill would take effect September 
1, 1997 and would apply to any appeal filed or pending under 
Section 42.25 or 42.26 of the Tax Code on or after the effective 
date.
          
LOCAL
The bill could increase costs to local governments by 
removing a current limitation on the amount of attorney's fees 
that may be awarded to property owners.
          
   Source:            Agencies:   304   Comptroller of Public Accounts
                                         
                      LBB Staff:   JK ,RR ,BR