LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE
75th Regular Session
May 30, 1997
TO: Honorable Bob Bullock Honorable James E. "Pete" Laney
Lieutenant Governor Speaker of the House
House of Representatives
Austin, Texas
Senate
Austin, Texas
FROM: John Keel, Director
In response to your request for a Fiscal Note on HJR4 ( proposing
a constitutional amendment increasing the amount of the school
property tax residence homestead exemption and providing for
the continuation and reduction of the school tax limitation
on the homesteads of certain persons) this office has detemined
the following:
Biennial Net Impact to General Revenue Funds by HJR4-Conference Committee Report
Implementing the provisions of the bill would result in a net
negative impact of $(1,044,625,000) to General Revenue Related
Funds through the biennium ending August 31, 1999.
Fiscal Analysis
The resolution proposes a constitutional amendment that would
increase the homestead exemption for school district property
taxes by $10,000.
The proposed amendment would adjust the
school district tax freeze for sixty-five and older homeowners
so that the benefit of the $10,000 increase in the homestead
exemption would be realized by those homeowners currently eligible
for the freeze.
The proposed amendment would also allow the
Legislature to provide for the transfer of all or part of the
sixty-five or over tax freeze to a different homestead.
The
amendment would be submitted to the voters on August 9, 1997.
The cost to the state for publication of the resolution
is $71,000.
Methodolgy
Estimates of the revenue loss from the increased homestead exemption
are based on estimates provided by the Comptroller of Public
Accounts. The fiscal note assumes that the State would fully
offset the property tax losses to school districts with increased
state aid under the foundation school program.
The probable fiscal implication relating to the increased homestead
exemption and publication of the resolution during each of the
first six years following passage is estimated as follows:
Six Year Impact:
Fiscal Year Probable Probable
Savings/(Cost) Savings/(Cost)
from General from General
Revenue Fund Revenue Fund for
Publication of
the Resolution
0001 0001
1997 $0 ($71,000)
1997 (511,665,000) 0
1999 (532,889,000) 0
2000 (554,893,000) 0
2001 (577,704,000) 0
2002 (601,350,000) 0
The fiscal note reflects only the costs related to the increased
homestead exemption for school district property taxes. (These
costs are also included in the fiscal note for the Conference
Committee Report of House Bill 4.)
The effect of portability
of the sixty-five and over freeze would depend on the enabling
legislation, House Bill 4.
Net Impact on General Revenue Related Funds:
The probable fiscal implication to General Revenue related funds
during each of the first five years is estimated as follows:
Fiscal Year Probable Net Postive/(Negative)
General Revenue Related Funds
Funds
1997 ($71,000)
1998 (511,665,000)
1999 (532,889,000)
2000 (554,893,000)
2001 (577,704,000)
2002 (601,350,000)
Similar annual fiscal implications would continue as long as
the provisions of the amendment are in effect.
The fiscal implications to school districts would depend on
the enabling legislation, House Bill 4, therefore the fiscal
implications to school districts are shown in the fiscal note
for that bill. The increase in the school district homestead
exemption would have the effect of shifting a small portion
of appraisal district administrative cost from school districts
to other taxing units.
Source: Agencies:
304 Comptroller of Public Accounts
701 Texas Education Agency - Administration
LBB Staff: JK ,RR ,RS ,BR