LEGISLATIVE BUDGET BOARD
                                   Austin, Texas
         
                                   FISCAL NOTE
                               75th Regular Session
         
                                  April 15, 1997
         
         
      TO: Honorable Tom Craddick, Chair            IN RE:  House Bill No. 2682
          Committee on Ways & Means                              By: Hawley
          House
          Austin, Texas
         
         
         
         
         FROM:  John Keel, Director    
         
In response to your request for a Fiscal Note on HB2682 ( Relating 
to ad valorem tax sanctions on certain land diverted from agricultural 
use.) this office has detemined the following:
         
         Biennial Net Impact to General Revenue Funds by HB2682-As Introduced
         
No fiscal implication to the State is anticipated.
         

         
 
FISCAL ANALYSIS
The bill would amend Section 23.55(f) of the 
Tax Code to waive the rollback tax for land that changed from 
a qualifying open-space use if the change of use occurred as 
a result of a transfer of the property to the state or a political 
subdivision of the state to be used for a public purpose.

Section 
23.55 of the Tax Code provides for an additional tax penalty 
(rollback tax) if the use of qualified open-space land changes. 
 The additional tax is equal to the difference between the taxes 
the owner paid on the land and the taxes the owner would have 
paid had the land been taxed on its market value for the five 
years preceding the year in which the change of use occurred, 
plus interest.

The bill would take effect September 1, 1997.
          
LOCAL
The bill could cause an undetermined loss of revenue 
to some taxing units that would otherwise collect rollback taxes 
on land subject to proposed provisions.  The Comptroller's Property 
Tax Division does not receive or maintain information from appraisal 
districts or taxing units that would determine the potential 
revenue loss to local governments. 
          
   Source:            Agencies:   304   Comptroller of Public Accounts
                                         
                      LBB Staff:   JK ,RR ,BR