LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE
75th Regular Session
May 13, 1997
TO: Honorable Paul Sadler, Chair IN RE: Senate Joint Resolution
No. 43, As Engrossed
Committee on Revenue and Public
Education Funding By: Cain
House
Austin, Texas
FROM: John Keel, Director
In response to your request for a Fiscal Note on SJR43 ( proposing
a constitutional amendment relating to transferring the school
tax freeze on homesteads of the elderly) this office has detemined
the following:
Biennial Net Impact to General Revenue Funds by SJR43-As Engrossed
Implementing the provisions of the bill would result in a net
impact of $0 to General Revenue Related Funds through the biennium
ending August 31, 1999.
The cost to the state for publication
of the resolution is $71,000.
Fiscal Analysis
The resolution would propose a constitutional amendment to allow
persons 65 years of age or older to retain their school tax
limitation (tax freeze) if the person were to acquire a different
residence homestead. Under current law, a person acquiring
another homestead loses the earlier tax limitation and must
establish a new freeze amount.
The proposed constitutional
amendment would be submitted to the voters at an election to
be held November 4, 1997.
Methodolgy
The resolution would allow persons 65 years of age or older
who move from one homestead to another to continue a tax freeze
that they would otherwise lose under current law.
A mobility
factor was estimated by dividing the national number of 65-and-over
homesteads moving within their states by the total national
number of 65-and-over homesteads. The mobility factor times
the number of 65-and-over homesteads in Texas equals the number
of Texas 65-and-over homesteads moving. The number of Texas
65-and-over homesteads moving times the average freeze value
loss times the 1996 average tax rate equals the yearly levy
loss for movers. The levy loss was trended over the projection
period. Each year's levy loss, net of 65-and-over deaths, is
cumulative.
The school funding formula would reimburse school
districts after a one-year lag, resulting in a state cost and
a corresponding reduction in the cost to school districts.
The probable fiscal implications of implementing the provisions
of the bill during each of the first five years following passage
is estimated as follows:
Five Year Impact:
Fiscal Year Probable Probable Revenue
Savings/(Cost) Gain/(Loss) from
from General School Districts
Revenue Fund
0001 LCL-SCHOOL
1998 $0 $0
1998 0 0
2000 0 (13,039,000)
2001 (13,039,000) (12,248,000)
2002 (25,288,000) (11,427,000)
Net Impact on General Revenue Related Funds:
Fiscal Year Probable Net Postive/(Negative)
General Revenue Related Funds
Funds
1998 $0
1999 0
2000 0
2001 (13,039,000)
2002 (25,288,000)
Source: Agencies: 701 Texas Education Agency - Administration
304 Comptroller of Public Accounts
LBB Staff: JK ,RR ,JD ,BR