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: HJR39 by Craddick (proposing a constitutional amendment
exempting personal property in this state from ad valorem
taxation), As Introduced
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* Estimated Two-Year Net Impact to General Revenue Related Funds for *
* HJR39, As Introduced: $0 through the biennium ending August 31, *
* 2001. *
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The cost to the state for publication of the resolution is $76,352.
General Revenue-Related Funds, Five-Year Impact:
****************************************************
* Fiscal Year Probable Net Positive/(Negative) *
* Impact to General Revenue Related *
* Funds *
* 2000 $0 *
* 2001 0 *
* 2002 (2,351,400,000) *
* 2003 (2,359,200,000) *
* 2004 (2,359,200,000) *
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All Funds, Five-Year Impact:
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*Fiscal Probable Probable Probable Probable *
* Year Savings/(Cost) Revenue Revenue Revenue *
* from Foundation Gain/(Loss) Gain/(Loss) Gain/(Loss) *
* School Fund from General from School from Cities *
* 0193 Revenue Fund * Districts *
* 0001 *
* 2000 $0 $0 $0 $0 *
* 2001 0 0 (1,967,400,000) (756,553,000) *
* 2002 (1,967,400,000) (384,000,000) (34,500,000) (798,564,400) *
* 2003 (2,001,000,000) (358,200,000) (400,000) (857,286,700) *
* 2004 (2,001,000,000) (358,200,000) (400,000) (900,151,000) *
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* Loss in Chapter 41 recapture revenue.
*****************************************************
* Fiscal Year Probable Revenue Gain/(Loss) from *
* Counties *
* 2000 $0 *
* 2001 (661,443,500) *
* 2002 (698,173,400) *
* 2003 (749,913,500) *
* 2004 (786,989,200) *
*****************************************************
Fiscal Analysis
Effective January 1, 2000, contingent on the passage of a constitutional
amendment authorizing the exemption, all personal property in Texas
would be exempt from ad valorem (property) taxation.
Methodology
School Finance
To estimate the fiscal impact on school finance the Legislative Budget
Board's Public Education Team modeled the exemption of personal property
by school district and the state's funding formulas.
Model analysis is based on student enrollment data with an annual growth
of approximately 2 percent, as well as tax rate and district property
value assumptions.
Local Government Taxing Units
The estimate for local government taxing units are based on projections
provided by the Comptroller of Public Accounts.
Local Government Impact
The fiscal impact on local taxing units is reflected in the above table.
Source Agencies:
LBB Staff: JK, BB, BR