LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE 74th Regular Session April 19, 1995 TO: Honorable John T. Montford, Chair IN RE: House Bill No. 366, Committee on Finance as engrossed Senate By: Austin, Texas FROM: John Keel, Director In response to your request for a Fiscal Note on House Bill No. 366 (proposing a constitutional amendment authorizing the exemption from ad valorem taxation of income-producing personal property and mineral interests having a value insufficient to recover the tax administrative costs.) this office has determined the following: The bill would exempt from ad valorem taxation income producing tangible personal property and mineral interest with a taxable value of less than $500. Property held and used at separate locations would be aggregated to determine taxable. The bill would be effective January 1, 1997, contingent on the passage of a constitutional amendment authorizing the exemption. The Comptroller's Property Tax Division does not receive or maintain appraisal information on the number and taxable value of personal property accounts and mineral interest of less than $500. Although the fiscal impact on the state cannot be determined, passage of the bill would cause a reduction in school district taxable values reported to the Commissioner of Education by the Comptroller. Changes in school district property wealth could have an impact on state funding for public education. The fiscal implication to units of local government cannot be determined. Source: Comptroller of Public Accounts LBB Staff: JK, BR, DF