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