SRC-JBJ C.S.S.B. 182 76(R)BILL ANALYSIS


Senate Research CenterC.S.S.B. 182
By: Nixon
Finance
5/10/1999
Committee Report (Substituted)


DIGEST 

Currently, there are two methods of appraising leaseholds: the possessory
method and the equity method, but the law is ambiguous as to which method
appraisal districts must use.  C.S.S.B. 182 would require an appraiser to
use the equity method to make certain determinations and calculations for
real property. 

PURPOSE

As proposed, C.S.S.B. 182 requires an appraiser to use the equity method to
make certain determinations and calculations for appraisal of real
property. 

RULEMAKING AUTHORITY

This bill does not grant any additional rulemaking authority to a state
officer, institution, or agency. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Section 23.12, Tax Code, to require an appraiser of real
property to apply generally accepted appraisal methods and techniques to
value the leasehold advantage or "equity." Prohibits the taxable value from
being greater than 10 times the leasehold rent advantage.  Makes conforming
changes.   

SECTION 2.  Effective date:  September 1, 1999.

SECTION 3.  Emergency clause.  


SUMMARY OF COMMITTEE CHANGES

SECTION 1.

Amends Section 23.13, Tax Code, to require an appraiser to apply generally
accepted appraisal methods and techniques to value equity, rather than use
certain specific methods, and to prohibit the taxable value from being
greater than 10 times the leasehold rent advantage.