LEGISLATIVE BUDGET BOARD
                              Austin, Texas
                                     
                    FISCAL NOTE, 76th Regular Session
  
                              March 19, 1999
  
  
          TO:  Honorable Rene Oliveira, Chair, House Committee on Ways &
               Means
  
        FROM:  John Keel, Director, Legislative Budget Board
  
       IN RE:  HB541 by Maxey (relating to an exemption from ad valorem
               taxation for property of an association of ambulatory
               health care centers), As Introduced
  
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*  Based on the state's school funding formulas, a reduction in          *
*  taxable values could result in an increase in the cost of state       *
*  aid for public education.                                             *
**************************************************************************
  
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 reduction in school district taxable
values reported to the Commissioner of Education by the Comptroller.
  
Local Government Impact
  
There would be some revenue loss to local governments if organizations
that would not otherwise qualify for existing property tax exemptions
qualified under the proposed exemption.  The amount of any loss to local
governments would depend on the number of organizations qualifying and
the value of their real and personal property owned and used exclusively
as required by this bill. 
  
  
Source Agencies:   
LBB Staff:         JK, BB, BR