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