LEGISLATIVE BUDGET BOARD
                          Austin, Texas

                           FISCAL NOTE
                       74th Regular Session

                          March 21, 1995



 TO:     Honorable Tom Craddick, Chair          IN RE:  House Bill No. 1622
         Committee on Ways & Means                      By: Jackson
         House of Representatives
         Austin, Texas






FROM: John Keel, Director

In response to your request for a Fiscal Note on House Bill No.
1622 (Relating to the exemption of a residence homestead from ad
valorem taxation by a school district.) this office has
determined the following:

The bill would allow voters within a school district to adopt, at
an election, a percentage homestead exemption for school district
taxable values.  A school board would be required to call an
election on petition of at least 20 percent of the voters who
voted in the preceding election of the district.  Voters would be
allowed to adopt an exemption if the school board has not already
done so, and could increase or decrease the amount of an adopted
exemption.  The school board would be prohibited from increasing
or decreasing the amount of an exemption adopted by the voters.

The bill would be effective January 1, 1996, contingent on the
passage of a constitutional amendment, such as HJR 75 or a
similar Joint Resolution.

In 1994, school districts reported to the Comptroller a total
taxable value loss of $9,486,305,918 for local option percentage
homestead exemptions.

Voter approval of, or increases in, existing percentage homestead
exemptions would result in a revenue loss to school districts,
unless tax rates are increased in those districts to offset any
value loss.  The Comptroller cannot estimate the number of
additional exemptions nor the amount of school district revenue
losses as a result of this bill.    




Passage of this bill would not cause a reduction in school 
district taxable values reported to the Commissioner of Education
by the Comptroller.  The Comptroller does not recognize local
option exemptions in their annual property value certification.


No fiscal implication to the State is anticipated.

The fiscal implication to  units of local government cannot be
determined.


Source:   Comptroller of Public Accounts
          LBB Staff: JK, BR, DF