LEGISLATIVE BUDGET BOARD
                                   Austin, Texas
         
                                   FISCAL NOTE
                               75th Regular Session
         
                                  March 3, 1997
         
         
      TO: Honorable Tom Craddick, Chair            IN RE:  House Bill No. 197
          Committee on Ways & Means                By: West, George "Buddy"
          House
          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 Introduced
         
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.
         

         
 
Similar annual fiscal implications The bill would amend Section 
11.435 (e) 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:   304   Comptroller of Public Accounts
                                         
                      LBB Staff:   JK ,RR ,BR