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