Bill No.: SF0012 Drafter: MQ

LSO No.: 06LSO-0170 Effective Date: 3/8/2006

Enrolled Act No.: SEA0001

Chapter No.: 5

Prime Sponsor: Joint Revenue Interim Committee

Catch Title: Intangible property-definition of real property.

Subject: Amends the definition of real property to include intangible characteristics.

Summary/Major Elements:

· This bill is part of the ongoing study of intangible property for ad valorem (property) tax purposes. The study is to determine which personal property intangible items should be exempted and which should be taxed.

· This bill amends the definition of real property to include any intangible characteristic which contributes to the fair market value of the real property.

· Last year the word "intangible" was added to the definition of real property so that such values could be recognized in calculating the fair market value of real property.

Comments:

· See also Senate File 31, Intangible property-definitions, which contains the items that will be exempted from taxation as intangibles.