LEGISLATIVE BUDGET BOARD
                                   Austin, Texas
         
                                   FISCAL NOTE
                               75th Regular Session
         
                                  April 6, 1997
         
         
      TO: Honorable Kenneth Armbrister, Chair            IN RE:  Senate Bill No. 765
          Committee on State Affairs                              By: Ratliff
          Senate
          Austin, Texas
         
         
         
         
         FROM:  John Keel, Director    
         
In response to your request for a Fiscal Note on SB765 ( Relating 
to appraisal for property tax purposes of open-space land that 
is converted to production of timber.) this office has detemined 
the following:
         
         Biennial Net Impact to General Revenue Funds by SB765-As Introduced
         
No significant fiscal implication to the State is anticipated.
         

         
 
The bill would allow landowners, whose land qualified for special 
appraisal as open-space land for at least five years preceding 
the land's conversion to production of timber, to qualify for 
special appraisal and continue to pay property taxes based on 
the property's prior use as agricultural land.  Appraisal of 
the land based on the use prior to conversion to timberland 
would continue for a 15 year period following the first year 
the land qualifies for timber valuation.  

The bill would 
apply only to land converted to the production of timber after 
September 1, 1997.

The bill would take effect January 1, 
1997.
          
No significant fiscal implication to units of local government 
is anticipated.
          
   Source:            Agencies:   304   Comptroller of Public Accounts
                                         
                      LBB Staff:   JK ,JD ,BR