LEGISLATIVE BUDGET BOARD
                          Austin, Texas

                           FISCAL NOTE
                       74th Regular Session

                          April 17, 1995



 TO:     Honorable Tom Craddick, Chair          IN RE:  House Bill No. 2613
         Committee on Ways & Means                      By: Craddick
         House of Representatives
         Austin, Texas






FROM: John Keel, Director

In response to your request for a Fiscal Note on House Bill No.
2613 (Relating to the exemption from ad valorem taxation of
property owned by a religious organization.) this office has
determined the following:

The bill would amend Section 11.20, Tax Code by expanding the
definition of  "physical Preparation" to mean an architectural or
engineering work, soil testing, land clearing activities, or site
improvement, or conducting an environmental or land use study
relating to the construction of an improvement by a religious
organization.

Section 11.20, Tax Code, provides a property tax exemption for
the property owned by a qualified religious organization and used
primarily as either a place of worship or as a residence for the
clergy.  The section further allows the exemption to apply to an
incomplete church structure that is under "active" construction
or other "physical Preparation" on January 1 of the tax year.  An
incomplete church structure exempted under this provision may not
be exempted for more than two years.


No significant fiscal implication to the State or units of local
government is anticipated.




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