LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE 75th Regular Session April 16, 1997 TO: Honorable David Counts, Chair IN RE: House Bill No. 2463, Committee Report 1st House, Substituted Committee on Natural Resources By: Moffat House Austin, Texas FROM: John Keel, Director In response to your request for a Fiscal Note on HB2463 ( Relating to the powers and duties of certain water control and improvement districts.) this office has detemined the following: Biennial Net Impact to General Revenue Funds by HB2463-Committee Report 1st House, Substituted No fiscal implication to the State is anticipated. This bill would allow water districts that operate under Chapter 51 of the Water Code, have no outstanding bonded debt, and impose no property tax to divide into two or more new districts, provided voters approve such a division. Upon voter approval, the bill also would allow such districts to impose a sales and use tax and a hotel occupancy tax as a county development district. A sales and use tax imposed could not be used to secure payment of bonded indebtedness. However, a district would be authorized to use tax proceeds to repay lease purchase contracts for the purchase of real and personal property. A district would also have the authority to add lands adjacent to its boundaries in certain circumstances. The cost of an election on the question of dividing a district or creating a tax would depend on the number of residents in a district. Based on data from a survey conducted by the Texas Association of Counties, the median cost of a local election has been calculated at $0.40 per resident. This bill would allow water districts to increase revenues significantly through sales and use taxes and hotel occupancy taxes. It would also allow districts to increase fee revenues by expanding its service areas. Source: Agencies: 304 Comptroller of Public Accounts LBB Staff: JK ,BB ,TL