HBA-RBT S.B. 1464 76(R)    BILL ANALYSIS


Office of House Bill AnalysisS.B. 1464
By: Cain
Ways & Means
5/20/1999
Engrossed


BACKGROUND AND PURPOSE 

Currently, furniture, fixtures, and equipment in or on real property are
included in the appraised value of income-producing real property for
purposes of ad valorem taxation.  The furniture, fixtures, and equipment
are also subject to the personal business property tax.  A double
assessment occurs when a taxpayer and the appraisal district reach a
settlement on real property using either the income or the market approach
to determine the value of the property, and the appraisal district only
uses the real property account and not the personal property.  S.B. 1464
prohibits furniture, fixtures, and equipment from being subject to
additional appraisal or taxation as personal property, if real property is
appraised by a method that takes into account the value of furniture,
fixtures, and equipment in or on the real property. 

RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that rulemaking
authority is expressly delegated to the in SECTION (Section , Code) of this
bill. 
 
SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Chapter 23B, Tax Code, by adding Section 23.24, as
follows: 

Sec. 23.24.  FURNITURE, FIXTURES, AND EQUIPMENT.  Prohibits furniture,
fixtures, and equipment from being subject to additional appraisal or
taxation as personal property, if real property is appraised by a method
that takes into account the value of furniture, fixtures, and equipment in
or on the real property. 

SECTION 2.Effective date: September 1, 1999.

SECTION 3.Emergency clause.