HBA-JRA S.B. 1097 76(R)    BILL ANALYSIS


Office of House Bill AnalysisS.B. 1097
By: Nixon
Ways & Means
4/26/1999
Engrossed



BACKGROUND AND PURPOSE 

Current law does not make clear whether representatives of a political
subdivision or the state are authorized to participate in a hearing held by
an appraisal review board.  When the property is leased by these tax-exempt
entities to non-tax-exempt entities, such testimony may be helpful.  S.B.
1097 authorizes the state or a political subdivision of this state to
participate in a challenge, protest, or appeal regarding the ad valorem tax
appraisal of a taxable leasehold or other possessory interest in real
property owned by this state or a political subdivision.  

RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that this bill does
not expressly delegate any additional rulemaking authority to a state
officer, department, agency, or institution. 

SECTION BY SECTION ANALYSIS

HBA-JRA S.B. 1097 76(R)   SECTION 1.  Amends Section 41.05, Tax Code, by
adding Subsection (d), as follows: 

(d)  Entitles the attorney general or a representative of the state agency
that owns real property that is the subject of a challenge before an
appraisal review board to appear at the hearing and offer evidence and
argument if the challenge relates to a taxable leasehold or other
possessory interest in real property that is owned by this state or a
political subdivision of this state. 

SECTION 2.  Amends Section 41.06, Tax Code, by adding Subsection (c), as
follows: 

(c)  Requires the secretary of the appraisal review board, if the challenge
relates to a taxable leasehold or other possessory interest in real
property that is owned by this state or a political subdivision of this
state, to deliver notice of the hearing by the 10th day before the date of
the hearing to the attorney general and the state agency or the governing
body of the political subdivision that owns the property.  

SECTION 3.  Amends Section 41.45, Tax Code, by adding Subsection (i), as
follows: 

(i)  Entitles the attorney general or a representative of the state agency
that owns real property that is the subject of a protest before the
appraisal review board to appear at the hearing and offer evidence and
argument if the hearing relates to a taxable leasehold or other possessory
interest in real property that is owned by this state or a political
subdivision of this state. 

SECTION 4. Amends Section 41.46, Tax Code, by adding Subsection (c), as
follows: 

(c)  Requires the secretary of the appraisal review board, if the protest
relates to a taxable leasehold or other possessory interest in real
property that is owned by this state or a political subdivision of this
state, to deliver notice of the hearing by the 15th day before the date of
the hearing to the attorney general and the state agency or the governing
body of the political subdivision that owns the property.   

SECTION 5.  Amends Subchapter A, Chapter 42, Tax Code, by adding Section
42.04, as follows: 
 
Sec. 42.04.  INTERVENTION BY STATE OR POLITICAL SUBDIVISION OWNING PROPERTY
SUBJECT TO TAXABLE LEASEHOLD.  Authorizes the attorney general or a
representative of the agency or political subdivision that owns the real
property to intervene in an appeal of an order of an appraisal review board
determining a challenge by a taxing unit or a taxpayer protest if the
challenge or protest relates to a taxable leaseholder or other possessory
interest in real property that is owned by this state or a political
subdivision of this state. 

SECTION 6.  Effective date: September 1, 1999.
            Makes application of this Act prospective.

SECTION 7.  Emergency clause.