LEGISLATIVE BUDGET BOARD
                                   Austin, Texas
         
                                   FISCAL NOTE
                               75th Regular Session
         
                                  April 9, 1997
         
         
      TO: Honorable Tom Craddick, Chair            IN RE:  House Bill No. 2293
          Committee on Ways & Means                              By: Oliveira
          House
          Austin, Texas
         
         
         
         
         FROM:  John Keel, Director    
         
In response to your request for a Fiscal Note on HB2293 ( Relating 
to the listing on an ad valorem tax appraisal roll of certain 
possessory interests in exempt property.) this office has detemined 
the following:
         
         Biennial Net Impact to General Revenue Funds by HB2293-As Introduced
         
Section 403.302 of the Government Code requires the Comptroller 
to conduct a property value study to determine the total taxable 
value for each school district.  Total taxable value is an element 
in the state's school funding formula.  Passage of this bill 
could cause a reduction in school district taxable values reported 
to the Commissioner of Education by the Comptroller.  To the 
extent that currently taxable property was removed from local 
school district tax rolls, the state could experience an increase 
in the cost of public education base on current funding formulas.
         

         
 
FISCAL ANALYSIS
The bill would amend Section 25.07 of the Tax 
Code to provide that leaseholds or other possessory interests 
in certain exempt property could not be listed by an appraisal 
district and would therefore be exempt from ad valorem taxation. 
 The property could not be listed if it was owned by an incorporated 
city or town, a public port, or a navigation district and was 
used as a facility or aid incidental or useful in the operation 
or development of a port or waterway or in aid of navigation-related 
commerce.

The bill would take effect immediately upon enactment, 
assuming that it received the requisite two-thirds majority 
votes in both houses of the Legislature.  Otherwise, it would 
take effect 90 days after adjournment.
          
LOCAL
The bill could result in a revenue loss to local governments. 
 The amount of loss would depend on the number of entities qualifying 
for the new exemption and the value of the leaseholds or possessory 
interests exempted.  

          
   Source:            Agencies:   304   Comptroller of Public Accounts
                                         
                      LBB Staff:   JK ,RR ,BR