LEGISLATIVE BUDGET BOARD
                                   Austin, Texas
         
                                   FISCAL NOTE
                               75th Regular Session
         
                                  May 10, 1997
         
         
      TO: Honorable Tom Craddick, Chair            IN RE:  Senate Bill No. 1596, 
As Engrossed
          Committee on Ways & Means                              By: Ellis
          House
          Austin, Texas
         
         
         
         
         FROM:  John Keel, Director    
         
In response to your request for a Fiscal Note on SB1596 ( Relating 
to ad valorem tax incentives for the development or redevelopment 
of certain property subject to a voluntary cleanup agreement.) 
this office has detemined the following:
         
         Biennial Net Impact to General Revenue Funds by SB1596-As Engrossed
         
No fiscal implication to the State is anticipated.
         

         
 
FISCAL ANALYSIS
The bill would allow a governmental entity 
to enter into a tax abatement agreement on certain property 
in a reinvestment zone that is subject to a voluntary cleanup 
agreement.  The tax abatement agreement would exempt a declining 
portion of the property value from ad valorem taxation for a 
period not to exceed four years.  The bill would specifically 
exempts school districts from entering into a tax abatement 
agreement under the provisions of this bill.

The bill would 
also require the eligible property owner to provide the chief 
appraiser with a certificate of completion relating to the cleanup 
of the property to accompany the application for an exemption. 


The bill would take effect September 1, 1997, and would 
apply only to ad valorem taxes imposed on or after January 1, 
1998.
          
There could be a loss of property tax revenue to local units 
of governments.  This loss of revenue would be a function of 
both the number and value of abatement agreements entered into 
under the provisions of this bill.
          
   Source:            Agencies:   
                                         
                      LBB Staff:   JK ,RR ,TH ,BR