LEGISLATIVE BUDGET BOARD
                                   Austin, Texas
         
                                   FISCAL NOTE
                               75th Regular Session
         
                                  February 26, 1997
         
         
      TO: Honorable Tom Craddick, Chair            IN RE:  House Bill No. 758
          Committee on Ways & Means                By: West
          House
          Austin, Texas
         
         
         
         
         FROM:  John Keel, Director    
         
In response to your request for a Fiscal Note on HB758 ( Relating 
to the sales and use tax rate of certain hospital districts.) 
this office has detemined the following:
         
         Biennial Net Impact to General Revenue Funds by HB758-As Introduced
         
No significant fiscal implication to the State is anticipated.
         

         
 
The bill would amend Section 285.061 (a) of the Health and Safety 
Code to expand the number of rates at which sales and use taxes 
could be imposed by eligible hospital districts.

Under current 
law, hospital districts could impose sales and use taxes at 
0.125, 0.25, 0.5, 1.0, 1.5, or 2.0 percent.  The bill would 
increase the number of potential rates by allowing rates ranging 
from 0.125 percent to 2.0 percent, in 0.125 percent increments.
          
The fiscal impact on hospital districts would be determined 
by the number of hospital districts that would elect to change 
their current tax rate and on whether these districts raised 
or lowered their sales and use tax rates.
          
   Source:            Agencies:   304   Comptroller of Public Accounts
                                         
                      LBB Staff:   JK ,RR ,SM