LEGISLATIVE BUDGET BOARD
                                   Austin, Texas
         
                                   FISCAL NOTE
                               75th Regular Session
         
                                  April 24, 1997
         
         
      TO: Honorable Rodney Ellis, Chair            IN RE:  House Bill No. 384, As Engrossed
          Committee on Jurisprudence                              By: Pitts
          Senate
          Austin, Texas
         
         
         
         
         FROM:  John Keel, Director    
         
In response to your request for a Fiscal Note on HB384 ( Relating 
to the disclosure in a contract for the transfer of vacant land 
of certain information, including information concerning the 
imposition of additional taxes on the land.) this office has 
detemined the following:
         
         Biennial Net Impact to General Revenue Funds by HB384-As Engrossed
         

No fiscal implication to the State is anticipated.
         

         
 
This bill would amend the Property Code to require that contracts 
for the sale of vacant land include statutory language giving 
the buyer notice of the possibility of a property tax penalty 
(rollback tax) for changing the use of land qualified for productivity 
appraisal.

The Tax Code currently provides for an additional 
tax penalty (rollback tax) if the use of qualified open-space 
land changes.  The penalty is equal to the difference between 
the taxes the owner paid on the land and the taxes the owner 
would have paid had the land been taxed on its market value 
for the five years preceding the year in which the change of 
use occurred, plus interest.  The rollback tax is the liability 
of the person who changes the use.

          
No significant fiscal implication to units of local government 
is anticipated.
          
   Source:            Agencies:   304   Comptroller of Public Accounts
                                         
                      LBB Staff:   JK ,BB ,TH ,BR