LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE
74th Regular Session
April 20, 1995
TO: Honorable John T. Montford, Chair IN RE: Senate Bill No. 345
Committee on Finance By: Brown
Senate
Austin, Texas
FROM: John Keel, Director
In response to your request for a Fiscal Note on Senate Bill No.
345 (Relating to the Property Redevelopment and Tax Abatement
Act.) this office has determined the following:
The bill would repeal the section in Chapter 312, Tax Code, that
sunsets the Property Redevelopment and Tax Abatement Act.
The Comptroller's Property Tax Division has estimated the impact
of the repeal of the sunset provisions of Chapter 312, Tax Code.
This estimate incorporates school district tax abatement growth
since the passage of SB 7 (which added a provision prohibiting
the Comptroller from deducting abated value from market value if
the abatement was granted after May 31, 1993). This abatement
change reduced the growth in school district abatements from its
pre-SB 7 rate because the reduced revenue from abated property is
no longer offset by increased state funding.
The probable fiscal implication of implementing the provisions of
the bill during each of the first five years following passage
is estimated as follows:
Fiscal Loss to School Loss to Counties Loss to Cities
Year Districts
1996 $2,700,000 $22,350,000 $3,857,000
1997 2,700,000 27,451,000 4,737,000
1998 2,700,000 31,966,000 5,516,000
1999 2,700,000 34,371,000 5,931,000
2000 2,700,000 34,795,000 6,004,000
Similar annual fiscal implications would continue as long as the
provisions of the bill are in effect.
The fiscal implication to the State cannot be determined.
Source: Comptroller of Public Accounts, Department of Commerce
LBB Staff: JK, BR, DF