SRC-ARR S.B. 1097 76(R)BILL ANALYSIS


Senate Research CenterS.B. 1097
By: Nixon
State Affairs
6/29/1999
Enrolled


DIGEST 

Currently, there is uncertainty as to whether representatives of a
political subdivision or the state can participate in a hearing of an
appraisal review board. When the property is leased by these taxexempt
entities to non-tax-exempt entities, such testimony is often needed and
helpful. S.B. 1097 will authorize the state and political subdivisions to
participate in tax appraisal hearings. 

PURPOSE

As enrolled, 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 the political subdivision.

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 41.05, Tax Code, by adding Subsection (d), to
provide that if the challenge relates to a taxable leasehold or other
possessory interest in real property that is owned by this state or certain
other parties of the state, the attorney general or a representative of the
agency or a designeis entitled to appear at the hearing and offer evidence
and argument. 

SECTION 2. Amends Section 41.06, Tax Code, by adding Subsection (c), to
require the secretary of the board to deliver notice of the hearing as
provided by Subsection (a) to certain state agencies or political
subdivisions, 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 3. Amends Section 41.45, Tax Code, by adding Subsection (i), to
make a conforming change. 

SECTION 4. Amends Section 41.46, Tax Code, by adding Subsection (c), to
require the appraisal review board (board) to deliver notice of the hearing
as provided by Subsection (a) to certain state agencies or political
subdivisions, 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 5. Amends Chapter 42A, 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 an agency
representative, or a person designated by the political subdivision that
owns the real property, as applicable, 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 certain other parties. 

SECTION 6. Effective date: September 1, 1999.
           Makes application of this Act prospective.
 
SECTION 7. Emergency clause.