LEGISLATIVE BUDGET BOARD
                                   Austin, Texas
         
                                   FISCAL NOTE
                               75th Regular Session
         
                                  April 4, 1997
         
         
      TO: Honorable Bill Ratliff, Chair            IN RE:  Senate Bill No. 1033
          Committee on Finance                              By: Harris
          Senate
          Austin, Texas
         
         
         
         
         FROM:  John Keel, Director    
         
In response to your request for a Fiscal Note on SB1033 ( Relating 
to the ad valorem taxation of property and to the appraisal 
of property for ad valorem tax purposes.) this office has detemined 
the following:
         
         Biennial Net Impact to General Revenue Funds by SB1033-As Introduced
         
No significant fiscal implication to the State is anticipated.
         

         
 
FISCAL ANALYSIS
The bill would amend Section 23.55(f) of the 
Tax Code to waive the rollback tax for land that changed from 
a qualifying open-space use if the change of use occurred as 
a result of a transfer of the property to the state or a political 
subdivision of the state to be used for a public purpose.

Section 
23.55 of the Tax Code provides for an additional tax penalty 
(rollback tax) if the use of qualified open-space land changes. 
 The additional tax is equal to the difference between the taxes 
the owner paid on the land and the taxes the owner would have 
paid had the land been taxed on its market value for the five 
years preceding the year in which the change of use occurred, 
plus interest.

The bill would take effect September 1, 1997. 

          
LOCAL
The bill would cause a loss of revenue to some taxing 
units that would otherwise collect rollback taxes on land subject 
to Section 23.55 of the Tax Code.
          
   Source:            Agencies:   304   Comptroller of Public Accounts
                                         
                      LBB Staff:   JK ,RR ,BR