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