LEGISLATIVE BUDGET BOARD
                                   Austin, Texas
         
                                   FISCAL NOTE
                               75th Regular Session
         
                                  April 9, 1997
         
         
      TO: Honorable Tom Craddick, Chair            IN RE:  House Bill No. 2044
          Committee on Ways & Means                              By: Smith
          House
          Austin, Texas
         
         
         
         
         FROM:  John Keel, Director    
         
In response to your request for a Fiscal Note on HB2044 ( Relating 
to notice that a municipality must provide before holding a 
public hearing on the adoption of an ad valorem tax increase.) 
this office has detemined the following:
         
         Biennial Net Impact to General Revenue Funds by HB2044-As Introduced
         
No fiscal implication to the State is anticipated.
         

         
 
FISCAL ANALYSIS
The bill would amend Chapter 26 of the Tax 
Code to require municipalities to mail a notice of hearing on 
a municipal tax increase to the household of each person who 
voted in the most recent general election for municipal officers. 
 Municipalities also would be required to publish a notice of 
the public hearing in the newspaper of general circulation that 
had the highest subscription rate in the municipality.

Current 
law requires a municipality and other taxing units to publish 
notices and to hold hearings if a proposed tax rate exceeds 
the lower of the effective tax rate times 1.03, or the rollback 
rate.  Taxing units may either deliver notice by mail to each 
property owner in the unit, or publish the notice in a general 
interest newspaper published at least once a week and distributed 
within the taxing unit.

This bill would take effect January 
1, 1998.
          
LOCAL
The mailing and publication requirements would increase 
mailing and publication costs to cities seeking to increase 
their tax rates in excess of the lower of the effective tax 
rate  times 1.03, or the rollback rate.  However, no significant 
fiscal implication to units of local government is anticipated.
          
   Source:            Agencies:   304   Comptroller of Public Accounts
                                         
                      LBB Staff:   JK ,RR ,BR