S.B. 1646 78(R)    BILL ANALYSIS


S.B. 1646
By: Staples
Local Government Ways and Means
Committee Report (Unamended)



BACKGROUND AND PURPOSE 

Timber value is determined by the timber manual as set forth by the Texas
Forest Service 
through rules implemented by the Texas comptroller of public accounts.
S.B. 1646 creates 
uniform valuation of timber land in East Texas counties to add greater
stability in annual 
valuations.

RULEMAKING AUTHORITY

It is the committee's opinion that this bill does not expressly grant any
additional rulemaking authority to a state officer, department, agency, or
institution. 

ANALYSIS

SECTION 1. Amends Section 23.71(2), Tax Code, to redefine "net to land."

SECTION 2. Amends Section 23.74, Tax Code, as follows:

 (a) Provides that the capitalization rate to be used in determining the
appraised value of 
 qualified timber land as provided by this subchapter is the greater of a
certain interest rate 
 or the capitalization rate used in determining the appraised value of
qualified timber land 
 as provided by this subchapter for the preceding tax year.

 (b) Provides exceptions to Subsection (a).

SECTION 3.   (a) Effective date: January 1, 2004.

  (b) Makes application of the change in law made by this Act prospective.


EFFECTIVE DATE

January 1, 2004.