1-1 By: Nixon S.B. No. 182
1-2 (In the Senate - Filed January 19, 1999; January 28, 1999,
1-3 read first time and referred to Committee on Finance; May 12, 1999,
1-4 reported adversely, with favorable Committee Substitute by the
1-5 following vote: Yeas 10, Nays 0; May 12, 1999, sent to printer.)
1-6 COMMITTEE SUBSTITUTE FOR S.B. No. 182 By: Moncrief
1-7 A BILL TO BE ENTITLED
1-8 AN ACT
1-9 relating to the appraisal of certain leaseholds for tax purposes.
1-10 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-11 SECTION 1. Section 23.13, Tax Code, is amended to read as
1-12 follows:
1-13 Sec. 23.13. TAXABLE LEASEHOLDS. (a) A taxable leasehold or
1-14 other possessory interest in real property that is exempt from
1-15 taxation to the owner of the estate or interest encumbered by the
1-16 possessory interest is appraised at the market value of the
1-17 leasehold or other possessory interest. Subject to the limitations
1-18 provided by Subsection (b), when appraising the leasehold or other
1-19 possessory interest in real property that is otherwise tax exempt,
1-20 the appraiser shall apply generally accepted appraisal methods and
1-21 techniques to value the leasehold advantage or "equity".
1-22 (b) The taxable [However, the appraised] value may not be
1-23 less than the total rental paid for the interest for the current
1-24 tax year. However, the taxable value may not be greater than 10
1-25 times the leasehold rent advantage (the positive result of market
1-26 rent minus contract rent).
1-27 SECTION 2. This Act takes effect September 1, 1999.
1-28 SECTION 3. The importance of this legislation and the
1-29 crowded condition of the calendars in both houses create an
1-30 emergency and an imperative public necessity that the
1-31 constitutional rule requiring bills to be read on three several
1-32 days in each house be suspended, and this rule is hereby suspended.
1-33 * * * * *