LEGISLATIVE BUDGET BOARD
                          Austin, Texas

                           FISCAL NOTE
                       74th Regular Session

                          March 27, 1995



 TO:     Honorable Tom Craddick, Chair          IN RE:  House Bill No. 2197
         Committee on Ways & Means                      By: Stiles
         House of Representatives
         Austin, Texas






FROM: John Keel, Director

In response to your request for a Fiscal Note on House Bill No.
2197 (Relating to the payment in installments of ad valorem taxes
on certain property located in a disaster area.) this office has
determined the following:

The bill would add a new Section 31.032 to the Tax Code allowing
installment payments on the same schedule currently provided in
Section 31.031, Tax Code, for property taxes on residential
property located in disaster areas.  The Comptroller would adopt
rules to implement the new section.

Section 31.031, Tax Code, provides that persons who are older
than 65 years of age on January 1 of the tax year and have
applied for the over-65 homestead exemption may pay their current
property taxes on their homestead in four installments.  The
over-65 taxpayer must pay at least one-fourth of their taxes
before February 1, (delinquency date).  The remaining payments
are due before April 1, June 1 and August 1, without penalty or
interest.  If the taxpayer fails to make a payment before the
required date, the unpaid amount is delinquent and incurs a
penalty of 12 percent and interest (at one percent for each month
delinquent).


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