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