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.