LEGISLATIVE BUDGET BOARD
                                   Austin, Texas
         
                                   FISCAL NOTE
                               75th Regular Session
         
                                  April 9, 1997
         
         
      TO: Honorable Fred Hill, Chair            IN RE:  House Bill No. 1117, Committee Report 1st House, Substituted
          Committee on Urban Affairs                              By: Giddings
          House
          Austin, Texas
         
         
         
         
         FROM:  John Keel, Director    
         
In response to your request for a Fiscal Note on HB1117 ( Relating 
to the creation of a neighborhood empowerment zone.) this office 
has detemined the following:
         
         Biennial Net Impact to General Revenue Funds by HB1117-Committee Report 1st House, Substituted
         
No fiscal implication to the State is anticipated.
         

         
 
          
This bill would allow a municipality to create neighborhood 
empowerment zones for certain purposes including providing affordable 
housing and increasing economic development.  A municipality 
would be able to waive fees, offer sales tax refunds or abatements 
and enter into property tax abatements in such zones.

This 
bill could result in decreased revenues to municipalities which 
choose to establish zones and offer tax rebates or abatements 
to persons or properties currently contributing tax revenues 
to such municipalities.  Waiving fees or rebating or refunding 
taxes on new projects could result in a municipality increasing 
expenditures without a subsequent increase in revenues to the 
municipality.  Since waivers, refunds, or abatements could not 
be granted for longer than a ten year period, a municipality 
would be expected to recover lost revenues within the 10 year 
period and, in some cases, increase revenues over current levels 
by the end of the period.   
          
   Source:            Agencies:   
                                         
                      LBB Staff:   JK ,TL