LEGISLATIVE BUDGET BOARD
                              Austin, Texas
                                     
                    FISCAL NOTE, 77th Regular Session
  
                              April 9, 2001
  
  
          TO:  Honorable Rene Oliveira, Chair, House Committee on Ways &
               Means
  
        FROM:  John Keel, Director, Legislative Budget Board
  
       IN RE:  HB3478  by Eiland (Relating to the income method of
               appraisal for property purposes.), As Introduced
  
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*  No significant fiscal implication to the State is anticipated.        *
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The bill would amend Section 23.012 of the Tax Code, relating to the
"income method" of appraisal for property tax purposes.

The bill would require the chief appraiser, when using the income
approach to value, to use "income and expense" data, rather than "rental
income and expense" data pertaining to the property.

By requiring the chief appraiser to use a property's "income" rather than
"rental income," the bill would conform the Tax Code to generally
accepted appraisal practices in the appraisal of income-producing
property.  Consequently, passage of the bill would have no significant
fiscal impact on the state and units of local government.
  
Local Government Impact
  
No significant fiscal implication to units of local government is
anticipated.
  
  
Source Agencies:   304   Comptroller of Public Accounts
LBB Staff:         JK, SD, BR