LEGISLATIVE BUDGET BOARD
                                   Austin, Texas
         
                                   FISCAL NOTE
                               75th Regular Session
         
                                  April 15, 1997
         
         
      TO: Honorable Tom Craddick, Chair            IN RE:  House Bill No. 2587
          Committee on Ways & Means                              By: Horn
          House
          Austin, Texas
         
         
         
         
         FROM:  John Keel, Director    
         
In response to your request for a Fiscal Note on HB2587 ( Relating 
to the collection of delinquent property taxes and the foreclosure 
of tax liens.) this office has detemined the following:
         
         Biennial Net Impact to General Revenue Funds by HB2587-As Introduced
         
No fiscal implication to the State is anticipated.
         

         
 
FISCAL ANALYSIS
The bill would change the possession of foreclosed 
property to 20 days after the purchaser's record deed was filed, 
change the amount of current property taxes paid on foreclosed 
property, and continue interest accruing on delinquent taxes 
from the date of judgment.

The bill would repeal the following 
payment taxes assessed against certain real property sections 
of the Tax Code:  Section 31.061(g), requiring the to only apply 
to a county with a population of 50,000 or less; Section 34.05(g), 
requiring the resale by a taxing unit to not apply to property 
sold in a municipality with a population of 1.5 million or more; 
and Section 324.21(f) relating to the definition of agricultural 
use.

The bill would take effect immediately upon enactment, 
assuming that it received the requisite two-thirds majority 
vote in both houses of the Legislature.  Otherwise, it would 
take effect 90 days after adjournment.
          
LOCAL
No significant fiscal implication to units of local government 
is anticipated. There would be some gain of revenue to taxing 
units for a full year's current tax payment rather than prorating 
the taxes and for interest continuing to accrue on the delinquent 
taxes.
          
   Source:            Agencies:   304   Comptroller of Public Accounts
                                         
                      LBB Staff:   JK ,RR ,BR