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