LEGISLATIVE BUDGET BOARD
                                   Austin, Texas
         
                                   FISCAL NOTE
                               75th Regular Session
         
                                  May 21, 1997
         
         
      TO: Honorable James E. "Pete" Laney            IN RE:  House Bill No. 137, 
As Passed 2nd House
          Speaker of the House                West George "Buddy"
          House of Representatives
          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 from ad valorem taxation) this office has detemined 
the following:
         
         Biennial Net Impact to General Revenue Funds by HB137-As Passed 2nd House
         
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 value 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