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 ************************************************************************** * No significant fiscal implication to the State is anticipated. * ************************************************************************** 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