LEGISLATIVE BUDGET BOARD
                                   Austin, Texas
         
                                   FISCAL NOTE
                               75th Regular Session
         
                                  April 11, 1997
         
         
      TO: Honorable Kenneth Armbrister, Chair            IN RE:  Senate Bill No. 841, Committee Report 1st House, Substituted
          Committee on State Affairs                              By: Cain
          Senate
          Austin, Texas
         
         
         
         
         FROM:  John Keel, Director    
         
In response to your request for a Fiscal Note on SB841 ( relating 
to ad valorem taxation.) this office has detemined the following:
         
         Biennial Net Impact to General Revenue Funds by SB841-Committee Report 1st House, Substituted
         
The cost to the state and units of local government would be 
a function on the number of over-65 homeowners who elect to 
avail themselves to the provisions of the bill.
         
The bill would make no appropriation but could provide the legal 
basis for an appropriation of funds to implement the provisions 
of the bill.
         
 
The bill would amend section  of the Tax Code regarding appraisal 
district administration and membership.  The bill also provides 
definitions of appraisal methods and techniques.

The bill 
would expand the current 65-and over tax limitation on school 
taxes.  Article VIII, Section 1-b(d) of the Texas Constitution 
and Section 11.26 of the Tax Code currently provides that once 
a person receives a 65-and over homestead exemption, the person 
would receive a tax ceiling for that home on total school taxes. 
 The school taxes on that home cannot increase as long as the 
person owns and lives in that home. 

Under current law, property 
owners lose their 65-and over school tax freeze if they move 
to a different home.  This bill would allow an owner to continue 
to pay the frozen amount of taxes on a subsequent homestead. 
 This would be based a percentage factor of the new taxes vs. 
the frozen amount.

The cost to the state and units of local 
government would be a function on the number of over-65 homeowners 
who elect to avail themselves of the provisions of the bill.
          
   Source:            Agencies:   
                                         LBB Staff
                      LBB Staff:   JK ,JD ,BR