By: Nixon S.B. No. 182
A BILL TO BE ENTITLED
AN ACT
1-1 relating to the appraisal of certain leaseholds for tax purposes.
1-2 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-3 SECTION 1. Section 23.13, Tax Code, is amended to read as
1-4 follows:
1-5 Sec. 23.13. TAXABLE LEASEHOLDS. (a) A taxable leasehold or
1-6 other possessory interest in real property that is exempt from
1-7 taxation to the owner of the estate or interest encumbered by the
1-8 possessory interest is appraised at the market value of the
1-9 leasehold or other possessory interest. Subject to the limitations
1-10 provided by Subsection (b), when appraising the leasehold or other
1-11 possessory interest in real property that is otherwise tax exempt,
1-12 the appraiser shall apply generally accepted appraisal methods and
1-13 techniques to value the leasehold advantage or "equity."
1-14 (b) The taxable [However, the appraised] value may not be
1-15 less than the total rental paid for the interest for the current
1-16 tax year. However, the taxable value may not be greater than 10
1-17 times the leasehold rent advantage (the positive result of market
1-18 rent minus contract rent).
1-19 SECTION 2. This Act takes effect September 1, 1999.
1-20 SECTION 3. The importance of this legislation and the
1-21 crowded condition of the calendars in both houses create an
1-22 emergency and an imperative public necessity that the
1-23 constitutional rule requiring bills to be read on three several
1-24 days in each house be suspended, and this rule is hereby suspended.