LEGISLATIVE BUDGET BOARD
                                   Austin, Texas
         
                                   FISCAL NOTE
                               75th Regular Session
         
                                  March 18, 1997
         
         
      TO: Honorable Fred Hill, Chair            IN RE:  House Bill No. 1117
          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 and powers of a neighborhood empowerment zone.) 
this office has detemined the following:
         
         Biennial Net Impact to General Revenue Funds by HB1117-As Introduced
         
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.  However, it is expected that a municipality creating 
neighborhood empowerment zones would anticipate that incentives 
offered in the zone would expire after a certain period of time, 
after which the municipality would anticipate increased revenues 
over current levels.   
          
   Source:            Agencies:   
                                         
                      LBB Staff:   JK ,TL