LEGISLATIVE BUDGET BOARD
                                   Austin, Texas
         
                                   FISCAL NOTE
                               75th Regular Session
         
                                  February 28, 1997
         
         
      TO: Honorable Tom Craddick, Chair            IN RE:  Senate Bill No. 344, As Engrossed
          Committee on Ways & Means                              By: Harris
          House
          Austin, Texas
         
         
         
         
         FROM:  John Keel, Director    
         
In response to your request for a Fiscal Note on SB344 ( relating 
to an exemption from ad valorem taxation for certain property 
acquired for use for a school) this office has detemined the 
following:
         
         Biennial Net Impact to General Revenue Funds by SB344-As Engrossed
         
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 taxable values reported to 
the Commissioner of Education by the Comptroller  This could 
cause an increase in state cost of public education, based on 
the current law school funding formulas.
         

         
 
FISCAL ANALYSIS
The bill would amend Section 11.21 of the Tax 
Code to allow a property tax exemption for a private school 
to remain in effect if the owner transferred or sold the school 
property but continued to operate a school and use the property 
for the same qualifying school purposes.

The bill would allow 
continuation of a school property tax exemption that would otherwise 
end.  The Comptroller's Property Tax Division does not receive 
or maintain information from appraisal districts that would 
be helpful in determining the fiscal impact of this bill on 
the state and local governments.
          
LOCAL
The value and revenue loss to local appraisal and tax 
rolls would depend on the incidence of use of the proposed amendment.
          
   Source:            Agencies:   304   Comptroller of Public Accounts
                                         
                      LBB Staff:   JK ,RR ,BR