LEGISLATIVE BUDGET BOARD
                                   Austin, Texas
         
                                   FISCAL NOTE
                               75th Regular Session
         
                                  April 3, 1997
         
         
      TO: Honorable Eddie Lucio, Jr., Chair            IN RE:  Senate Bill No. 1438, Committee Report 1st House, Substituted
          Committee on Intergovernmental Relations                              By: Wentworth
          Senate
          Austin, Texas
         
         
         
         
         FROM:  John Keel, Director    
         
In response to your request for a Fiscal Note on SB1438 ( Relating 
to a late application by certain veterans organizations for 
an exemption from ad valorem taxation.) this office has detemined 
the following:
         
         Biennial Net Impact to General Revenue Funds by SB1438-Committee Report 1st House, Substituted
         
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 Chapter 11 of the Tax Code to allow veterans 
organizations to file late applications until December 31, 1998. 
  Veterans organizations would be allowed to file a late application 
as a charitable organization if the application was filed no 
later than December 31 of the third year after the year in which 
the imposed taxes for the exemption were claimed. 

The bill 
would take effect September 1, 1997.

FISCAL IMPACT

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 this bill 
could cause a decrease in school district taxable values reported 
to the Commissioner of Education by the Comptroller.  The decrease 
in school district taxable value could result in an increase 
in the state cost of public education, based on current funding 
formulars.

The bill could result in a revenue loss to local 
governments.  The amount of loss would depend on the number 
of veterans organizations qualifying for the late application 
for exemptions and the value of the real and personal property 
exempted.
          
   Source:            Agencies:   
                                         
                      LBB Staff:   JK ,TL