LEGISLATIVE BUDGET BOARD
                          Austin, Texas

                           FISCAL NOTE
                       74th Regular Session

                          April 25, 1995



 TO:     Honorable Tom Craddick, Chair          IN RE:  Senate Bill No.
         Committee on Ways & Means              1654,
         House of Representatives                              as engrossed
         Austin, Texas                                  By: Montford









FROM: John Keel, Director

In response to your request for a Fiscal Note on Senate Bill No.
1654 (relating to the exemption from ad valorem taxation of real
property owned by certain organizations chartered by the Congress
of the Republic of Texas) this office has determined the
following:

The bill would provide a property tax exemption for real property
owned by an organizations charted by the Congress of the Republic
of Texas that have been in continuous existence since their
charter and used primarily for charitable, benevolent or public
service.

The bill would be effective January 1, 1996, contingent on the
passage of a constitutional amendment authorizing the exemption.

The Comptroller's Property Tax Division cannot identify all
organizations that might qualify for the proposed exemption.  The
Comptroller's staff was able to identify Masonic Lodges as one
organization that would qualify.  Based on available data, the
estimated impact on units of local government are presented
below.

Passage of this 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 full
impact cannot be determined.    




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  Probable Loss to   Probable Loss to   Probable Loss to  
             Year   School Districts        Cities            Counties      
                                                                            
          1996               $508,300           $233,100            $197,400
          1997                508,300            233,100             197,400
                                                                            
          1998                508,300            233,100             197,400
                                                                            
          1999                508,300            233,100             197,400
          2000                508,300            233,100             197,400
                                                                            
                                                                            
                                                                            
       Similar annual fiscal implications would continue as long as the
provisions of the bill are in effect.


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