LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 76th Regular Session April 12, 1999 TO: Honorable Rene Oliveira, Chair, House Committee on Ways & Means FROM: John Keel, Director, Legislative Budget Board IN RE: HJR81 by Uher (proposing a constitutional amendment relating to the ad valorem taxation of boats and other equipment used in the commercial taking or production of fish, shrimp, shellfish, or other marine life), As Introduced ************************************************************************** * Estimated Two-Year Net Impact to General Revenue Related Fundsfor * * HJR81, As Introduced: negative impact of $(1,848,827) through the * * biennium ending August 31, 2001. * ************************************************************************** General Revenue-Related Funds, Five-Year Impact: **************************************************** * Fiscal Year Probable Net Positive/(Negative) * * Impact to General Revenue Related * * Funds * * 2000 $0 * * 2001 (1,848,827) * * 2002 (1,959,757) * * 2003 (2,077,342) * * 2004 (2,201,983) * **************************************************** All Funds, Five-Year Impact: *************************************************************************** *Fiscal Probable Probable Probable Probable * * Year Savings/(Cost) Revenue Revenue Revenue * * to General Gain/(Loss) to Gain/(Loss) to Gain/(Loss) to * * Revenue Fund School Districts Counties Cities * * 0001 * * 2000 $0 $(1,848,827) $(431,393) $(739,531) * * 2001 (1,848,827) (110,930) (457,277) (783,903) * * 2002 (1,959,757) (117,585) (484,713) (830,937) * * 2003 (2,077,342) (124,641) (513,796) (880,793) * * 2004 (2,201,983) (132,119) (544,624) (933,641) * *************************************************************************** Fiscal Analysis The resolution would provide for a property tax exemption for boats and other equipment used in commercial fishing. Methodology The Comptroller is required 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. The cost to the state was estimated by assuming that the state would reimburse school districts for their total levy losses after a one-year lag. It is estimated that $123 million in new property would be deleted from the appraisal tax rolls annually. Statewide average tax rates, by taxing unit, were applied to the base amount which was adjusted to reflect increased valuations. Local Government Impact The estimated amount of tax levy gain to units of local government is reflected in the table above. Source Agencies: LBB Staff: JK, BB, BR