LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE 75th Regular Session May 24, 1997 TO: Honorable James E. "Pete" Laney IN RE: House Bill No. 1239, As Passed 2nd House Speaker of the House By: Jackson House of Representatives Austin, Texas FROM: John Keel, Director In response to your request for a Fiscal Note on HB1239 ( relating to the voluntary cleanup program.) this office has detemined the following: Biennial Net Impact to General Revenue Funds by HB1239-As Passed 2nd House No significant fiscal implication to the State is anticipated. FISCAL ANALYSIS The bill would amend Health and Safety Code provisions relating to superfund sites, including references to federal brownfield cleanup initiatives and assessment of liability for cleanup expenses. In addition, the Tax Code would be amended to allow local government entities to enter into tax abatement agreements for cleanup of certain properties. Tax abatement agreements would exempt a declining portion of the property value from ad valorem taxation for a period not to exceed four years. Eligible property owners would be required to provide the chief appraiser with a certificate of completion relating to the cleanup to accompany the application for an exemption. These provisions would apply only to ad valorem taxes imposed on or after January 1, 1998. Total taxable value, an element of the state's school funding formula, could be reduced by passage of the bill. A reduction in school district taxable values could increase the state's cost of public education based on current law funding formulas. In addition, there could be a loss of property tax revenue to other local units of government. The potential loss to school districts and other local government entities would depend upon both the number and value of abatement agreements entered into under the provisions of this bill. Source: Agencies: 582 Natural Resources Conservation Commission 304 Comptroller of Public Accounts LBB Staff: JK ,BB ,MS ,BR