LEGISLATIVE BUDGET BOARD
                          Austin, Texas

                           FISCAL NOTE
                       74th Regular Session

                          March 12, 1995



 TO:     Honorable Rene O. Oliveira, Chair      IN RE:  House Bill No. 788
         Committee on Economic Development              By: Brimer
         House of Representatives
         Austin, Texas







FROM: John Keel, Director

In response to your request for a Fiscal Note on House Bill No.
788 (relating to the authority of a municipality to create an
industrial development corporation and to levy a sales and use
tax to carry out the projects of the corporation) this office has
determined the following:

The bill would amend Section 4B of the Development Corporation
Act of 1979 by changing the definition of cities eligible to
create an industrial development corporation.

Under current law, an "eligible city" includes a city that is
located in a county with a population of more than 750,000, and
in which the combined rate of sales and use taxes imposed by the
state, city and other political subdivisions of the state having
territory in the city does not exceed 7.25 percent.  The bill
would raise this rate to 7.75 percent.  Current law allows
"eligible cities" to levy
a sales and use tax to carry out the projects of the corporation.

No significant fiscal implication to the State is anticipated.

The fiscal implication to units of local government cannot be
determined because the number of cities that would become
eligible and subsequently create industrial development
corporations, with the authority to levy sales and use taxes,
cannot be determined.
        




    
 






Source:   LBB Staff: JK, SM, RR.    Comptroller of Public
Accounts