LEGISLATIVE BUDGET BOARD
                                   Austin, Texas
         
                                   FISCAL NOTE
                               75th Regular Session
         
                                  May 10, 1997
         
         
      TO: Honorable Tom Craddick, Chair            IN RE:  House Bill No. 2680, Committee Report 1st House, Substituted
          Committee on Ways & Means                              By: Hunter
          House
          Austin, Texas
         
         
         
         
         FROM:  John Keel, Director    
         
In response to your request for a Fiscal Note on HB2680 ( Relating 
to property tax exemptions for charitable organizations.) this 
office has detemined the following:
         
         Biennial Net Impact to General Revenue Funds by HB2680-Committee Report 1st House, Substituted
         
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 the bill 
could cause a reduction in school district taxable values reported 
to the Commissioner of Education by the Comptroller.  Based 
on the state's school funding formulas, a reduction in taxable 
values could result in an increase in the cost of state aid 
for public education.
         

         
 
FISCAL ANALYSIS
The bill would amend Chapter 11 of the Tax 
Code to provide a charitable exemption for retirement communities 
and nursing homes that provide elderly housing with services. 
 To qualify for an exemption, a retirement community or nursing 
home would have to provide housing and services to the elderly 
without regard to a resident's ability to pay or in an amount 
equal to four percent of the retirement community's or nursing 
home's net patient or net resident revenue.  The exemption would 
apply to real and personal property owned by the organization 
operating a retirement community or nursing home and used exclusively 
for carrying out the organization's purpose. 
          
LOCAL
There would be some revenue loss to local governments 
if organizations that would not otherwise qualify for existing 
property tax exemptions qualified under the proposed exemption. 
 The amount of any loss to local governments would depend on 
the number of organizations qualifying and the value of the 
real and tangible personal property owned and used exclusively 
as required by the bill.
          
   Source:            Agencies:   
                                         
                      LBB Staff:   JK ,RR ,BR