LEGISLATIVE BUDGET BOARD
                              Austin, Texas
                                     
                    FISCAL NOTE, 76th Regular Session
  
                              March 21, 1999
  
  
          TO:  Honorable Rene Oliveira, Chair, House Committee on Ways &
               Means
  
        FROM:  John Keel, Director, Legislative Budget Board
  
       IN RE:  HB873 by Hochberg (relating to an exemption from ad
               valorem taxation for property of certain nonprofit
               organizations while improvements are under
               construction), 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 nonprofit
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 real and tangible personal property owned
and used exclusively as required by the bill
  
  
Source Agencies:   
LBB Staff:         JK, BB, BR