LEGISLATIVE BUDGET BOARD
                          Austin, Texas

                           FISCAL NOTE
                       74th Regular Session

                        February 27, 1995



 TO:     Honorable Tom Craddick, Chair          IN RE:  House Bill No. 366
         Committee on Ways & Means                      By: Hartnett
         House of Representatives
         Austin, Texas






FROM: John Keel, Director

In response to your request for a Fiscal Note on House Bill No.
366 (Relating to the exemption from ad valorem taxation of
income-producing tangible personal property having a value of
less than a certain amount.) this office has determined the
following:

The bill would exempt from ad valorem taxation income producing
tangible personal property 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 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