LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE 74th Regular Session April 18, 1995 TO: Honorable Rene O. Oliveira, Chair IN RE: House Bill No. 2492 Committee on Economic Development By: Allen House of Representatives Austin, Texas FROM: John Keel, Director In response to your request for a Fiscal Note on House Bill No. 2492 (relating to industrial development corporations created by certain cities and the taxes levied for projects of those corporations) this office has determined the following: The bill would amend Section 4A of the Development Corporation Act of 1979 to expand the definition of "eligible city" to include any city currently eligible under Section 4B of that Act. The bill would amend Section 4B of the Act to allow a 4B city which has levied a sales and use tax that is no longer needed for a specific project, to hold another election to obtain voter approval to use the sales tax for other 4B projects. Currently, Section 4A and 4B cities are allowed to hold a tax election on a Uniform Election Date, which occurs four times a year (January, May, August and November). The bill would allow them to hold a tax election at anytime. No significant 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, SM, RR