LEGISLATIVE BUDGET BOARD
                                   Austin, Texas
         
                                   FISCAL NOTE
                               75th Regular Session
         
                                  April 18, 1997
         
         
      TO: Honorable Fred M. Bosse, Chair            IN RE:  House Bill No. 3240, Committee Report 1st House, Substituted
          Committee on Land and Resource Management                              By: Hilderbran
          House
          Austin, Texas
         
         
         
         
         FROM:  John Keel, Director    
         
In response to your request for a Fiscal Note on HB3240 ( Relating 
to the disannexation of an area by a general-law municipality.) 
this office has detemined the following:
         
         Biennial Net Impact to General Revenue Funds by HB3240-Committee Report 1st House, Substituted
         

No fiscal implication to the State is anticipated.
         

         
 
          
This bill could have a negative fiscal impact on a municipality 
with a population of 1,000 to 4,999 that disannexes an area. 
  Such a municipality could be required, in some cases, to continue 
providing services, but could no longer collect ad valorem taxes 
on property in the disannexed area.  The extent to which the 
bill could impact such a municipality would depend on the amount 
of funds that were spent by the municipality on capital improvements 
in the disannexed area and the portion which the municipality 
had anticipated repaying through the ad valorem taxes collected 
in the area in question.    
          
   Source:            Agencies:   304   Comptroller of Public Accounts
                                         
                      LBB Staff:   JK ,BB ,TL