LEGISLATIVE BUDGET BOARD
                          Austin, Texas

                           FISCAL NOTE
                       74th Regular Session

                          April 1, 1995



 TO:     Honorable Senator John T. Montford,    IN RE:  Senate Bill No.
         Chair                                  428
         Committee on Finance                           By: Galloway
         Senate
         Austin, Texas






FROM: John Keel, Director

In response to your request for a Fiscal Note on Senate Bill No.
428 (Relating to the exemption from ad valorem taxation of
property owned by certain charitable organizations.) this office
has determined the following:

The bill would provide an exemption from ad valorem taxation,
property owned by a charitable organization promoting or
operating a theater of performing arts.

The Texas Constitution grants the legislature the authority to
exempt the property of "institutions of purely public charity"
from taxation.  Current law exempts theaters of dramatic arts, if
performed by an organization that meets the charitable
organization criteria.

The exemption of the property of an organization promoting or
operating a theater of the performing arts would result in the
loss of tax revenues for taxing units that presently tax them. 
In addition the bill would cause a reduction in school district
taxable values reported to the Commissioner of Education by the
Comptroller.  Changes in school district property wealth could
have an impact on state funding for public education .

The number and value of property that may qualify for this
exemption cannot be identified, therefore the fiscal impact on
the State and units of local government cannot be determined.    





 

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