LEGISLATIVE BUDGET BOARD
                                   Austin, Texas
         
                                   FISCAL NOTE
                               75th Regular Session
         
                                  April 28, 1997
         
         
      TO: Honorable Bill Ratliff, Chair            IN RE:  Senate Bill No. 1375, Committee Report 1st House, 
as amended
          Committee on Finance                              By: Nixon,Drew
          Senate
          Austin, Texas
         
         
         
         
         FROM:  John Keel, Director    
         
In response to your request for a Fiscal Note on SB1375 ( relating 
to the appraisal of certain leaseholds for tax purposes) this 
office has detemined the following:
         
         Biennial Net Impact to General Revenue Funds by SB1375-Committee Report 1st House, as amended
         
No fiscal implication to the State is anticipated.
         

         
 
The bill would amend Section 23.13 of the Tax Code to clarify 
that appraisal districts use the equity method when appraising 
taxable leaseholds.  There could be a fiscal impact on local 
governments that were not using the equity method to appraise 
taxable leaseholds.  T e bill would also allow the state or 
a political subdivision of the state to challenge certain taxable 
leasehold interest relating to property taxes.
          
   Source:            Agencies:   
                                         
                      LBB Staff:   JK ,RR ,BR