LEGISLATIVE BUDGET BOARD
                                   Austin, Texas
         
                                   FISCAL NOTE
                               75th Regular Session
         
                                  May 9, 1997
         
         
      TO: Honorable Eddie Lucio, Jr., Chair            IN RE:  House Bill No. 2649, As Engrossed
          Committee on Intergovernmental Relations                              By: Hamric
          Senate
          Austin, Texas
         
         
         
         
         FROM:  John Keel, Director    
         
In response to your request for a Fiscal Note on HB2649 ( Relating 
to the maximum ad valorem tax rate for certain rural fire prevention 
districts.) this office has detemined the following:
         
         Biennial Net Impact to General Revenue Funds by HB2649-As Engrossed
         
No significant fiscal implication to the State is anticipated.
         

         
 
The bill would change the allowed amount of ad valorem property 
tax on property located in rural fire prevention districts, 
if any part of the district is located in Harris County, to 
a maximum of five ($0.05) cents on one hundred ($100) dollars 
valuation.  The bill would also allow the board of fire commissioners 
of a district to call an election to increase the tax rate to 
the maximum allowed by the constitution.

The bill would be 
effective on the date the constitutional amendment allowing 
the legislature to increase the tax rate is approved by the 
voters at an election to be held November 4, 1997, and certified 
by the Secretary of State.
          
The Comptroller's Property Tax Division, Harris County, and 
the Harris County Appraisal District provided information for 
determining the fiscal impact.   It has been estimated that 
the maximum additional ad valorem tax revenue available to rural 
fire prevention districts in Harris County would be $3.5 million, 
if all districts approved the increase and the tax rate was 
increased to the maximum allowed.
          
   Source:            Agencies:   304   Comptroller of Public Accounts
                                         
                      LBB Staff:   JK ,TL ,RR ,BR