LEGISLATIVE BUDGET BOARD
                                   Austin, Texas
         
                                   FISCAL NOTE
                               75th Regular Session
         
                                  April 24, 1997
         
         
      TO: Honorable Bill Ratliff, Chair            IN RE:  House Bill No. 197,
 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 HB197 ( relating 
to a late application by certain charitable organizations for 
an exemption from ad valorem taxation) this office has detemined 
the following:
         
         Biennial Net Impact to General Revenue Funds by HB197-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.
         

         
 
The bill would amend Section 11.435 (e) and 11.433, Tax Code 
to allow defined charitable organizations to file late applications 
until December 31, 1997.

Under current law, for property 
tax exemption purposes, Section 11.435 (a)-(d) of the Property 
Tax Code allows a charitable organization that provides residential 
care or temporary shelter for orphans; delinquent, dependent, 
or handicapped children; battered spouses; the impoverished; 
and natural disaster victims to file a late application as a 
charitable organization if the application is filed no later 
than December 31 of the second year after the year in which 
the taxes for which the exemption is claimed were imposed.  
However, pursuant to Section 11.435 (e), the application may 
not be filed after December 31, 1991.
          
To the extent that additional organizations could qualify for 
property tax exemptions which they would not be qualified for 
under current law, there would be a reduction in local tax levies.
          
   Source:            Agencies:   
                                         
                      LBB Staff:   JK ,RR ,BR