LEGISLATIVE BUDGET BOARD
                                   Austin, Texas
         
                                   FISCAL NOTE
                               75th Regular Session
         
                                  April 23, 1997
         
         
      TO: Honorable Bill Ratliff, Chair            IN RE:  Senate Bill No. 1880
          Committee on Finance                              By: Barrientos
          Senate
          Austin, Texas
         
         
         
         
         FROM:  John Keel, Director    
         
In response to your request for a Fiscal Note on SB1880 ( Relating 
to exempting from ad valorem taxation property used to provide 
transitional shelter or housing to homeless persons who are 
military veterans or the dependents or survivors of military 
veterans.) this office has detemined the following:
         
         Biennial Net Impact to General Revenue Funds by SB1880-As Introduced
         
Based on current law funding formulas, a reduction in school 
district taxable values could increase the cost of state funded 
public education.
         

         
 
FISCAL ANALYSIS
The bill would amend Chapter 11 of the Tax 
Code to provide a charitable exemption for organizations that 
provide transitional shelter or housing to homeless persons 
who are military veterans or their dependents or survivors. 
 To be eligible, an organization would have to consist primarily 
of U.S. military veterans or meet the charitable organization 
requirements in Section 11.18(e) and (f) of the Tax Code.  The 
exemption would apply to real and personal property owned by 
the organization and used exclusively for carrying out the organization's 
purpose.

The bill would take effect January 1, 1998.     

METHODOLOGY
There 
would be no direct revenue impact on the state because the state 
is constitutionally prohibited from imposing a state property 
tax.  However, 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 the bill could cause a reduction in school district 
taxable values reported to the Commissioner of Education by 
the Comptroller.

LOCAL
The bill would result in a revenue 
loss to local governments.  The amount of loss would depend 
on the number of organizations qualifying for the new exemption 
and the value of real and personal property exempted.
          
   Source:            Agencies:   304   Comptroller of Public Accounts
                                         
                      LBB Staff:   JK ,RR ,BR