LEGISLATIVE BUDGET BOARD
                                   Austin, Texas
         
                                   FISCAL NOTE
                               75th Regular Session
         
                                  May 31, 1997
         
         
      TO: Honorable Bob Bullock            Honorable James E. "Pete" Laney
          Lieutenant Governor                Speaker of the House
          Senate
          Austin, Texas
         
         
         
         
         FROM:  John Keel, Director    
         
In response to your request for a Fiscal Note on HB2001 ( relating 
to the enterprise zones and certain projects in enterprise zones.) 
this office has detemined the following:
         
         Biennial Net Impact to General Revenue Funds by HB2001-Conference Committee Report
         
No significant fiscal implication to the State is anticipated.
         
Floor amendment #3 would include convention center facilities 
as an eligible project in Sec. 4B of the Development Corporation 
Act of 1979.  There are currently 4B city development corporations 
within the state.

Under Sec. 4B, a qualified convention center 
facility would be owned, used, and held for public purposes 
by the city or county.  While a facility was owned by the city 
or county, it would not be subject to property taxation.

The 
fiscal impact on the state and on local governments in reduced 
property tax revenue would vary depending on which cities or 
counties enacted the provisions of the bill and converted taxable 
property to exempt "public-use property."  Article 5190.6, Development 
Corporation Act, Section 4B. (k) provides a property tax exemption 
for all approved projects owned, used and held by an eligible 
municipality or county.  The exemption is based on a provision 
that defines all such projects as "public-use property" which 
is exempt from ad valorem taxes.

Section 403.302, Government 
Code, requires the Comptroller to conduct a property value study 
to determine the total taxable value for each school district. 
 Passage of the bill could cause a reduction in a school district's 
taxable values reported to the Commissioner of Education by 
the Comptroller.

The fiscal impact on the State would vary 
depending on which cities or counties would choose to develop 
convention center facilities under Section 4B of the Development 
Corporation Act of 1979. 

The fiscal impact on local governments 
would vary depending on which cities or counties would choose 
to finance convention center facilities through the municipal 
hotel tax.
         
 
          
No fiscal implication to units of local government is anticipated.
          
   Source:            Agencies:   
                                         
                      LBB Staff:   JK ,TH ,CG