LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE 75th Regular Session May 17, 1997 TO: Honorable Bill Ratliff, Chair IN RE: House Bill No. 137, As Engrossed Committee on Finance By: West,George "Buddy" Senate Austin, Texas FROM: John Keel, Director In response to your request for a Fiscal Note on HB137 ( relating to the qualifications of certain charitable organizations for an exemption for ad valorem taxation) this office has detemined the following: Biennial Net Impact to General Revenue Funds by HB137-As Engrossed Section 403.302, Government Code, requires the Comptroller to conduct a property value study to determine the total taxable value for each school district. Total taxable value is an element in the state's school funding formula. Passage of the bill could cause a reduction in school district taxable values reported to the Commissioner of Education by the Comptroller. A reduction in school district taxable values could increase the state's cost of public education based on current law funding formulas. To the extent that additional organizations would qualify for property tax exemptions for which they could not currently qualify, there would be a reduction in local tax levies. Source: Agencies: LBB Staff: JK ,RR ,BR