LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE 75th Regular Session April 28, 1997 TO: Honorable Fred Hill, Chair IN RE: Senate Bill No. 657, As Engrossed Committee on Urban Affairs By: Barrientos House Austin, Texas FROM: John Keel, Director In response to your request for a Fiscal Note on SB657 ( Relating to the creation of intermunicipal commuter rail districts; granting authority to issue bonds and power of eminent domain.) this office has detemined the following: Biennial Net Impact to General Revenue Funds by SB657-As Engrossed No significant fiscal implication to the State is anticipated. This bill would allow a commuter rail district to be created between Austin and San Antonio. Any county adjacent to either Bexar or Travis Counties would be eligible to join the district, as well as any municipalities with populations over 18,000 located within such eligible counties. A board would be appointed to manage and operate the district, and the district would have the authority to issue bonds and collect user fees. There could be some cost to municipalities and counties which opt to join a commuter rail district. Those costs would be dependent on preliminary studies, negotiations, and acquisitions required to create the district. Once a district is created, a local government could incur costs associated with the financing of transportation infrastructure constructed within the territory of the local government, if the local government agrees to such expenses. There could be a nominal loss in property tax revenues to local governments which levy property taxes as a result of this bill's passage, since property acquired by such districts would be exempt from such taxes. A local government, other than a school district, could agree to forego up to 30 percent of increased ad valorem tax collections that are attributable to increased value of property resulting from an infrastructure project. Such revenues would be transferred to the commuter rail district, but would be designated for use within the territory of the local government. A local government could be required to forego local sales and use taxes generated from items sold on district property, since such taxes would be remitted by the Comptroller to the district. However, no existing sales and use tax revenues are anticipated to be affected. Source: Agencies: LBB Staff: JK ,TL