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