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