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