LEGISLATIVE BUDGET BOARD
                              Austin, Texas
                                     
                    FISCAL NOTE, 76th Regular Session
  
                              April 5, 1999
  
  
          TO:  Honorable Frank Madla, Chair, Senate Committee on
               Intergovernmental Relations
  
        FROM:  John Keel, Director, Legislative Budget Board
  
       IN RE:  SB 918  by Wentworth (Relating to municipalities eligible
               to create certain development corporations.), As
               Introduced
  
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*  No significant fiscal implication to the State is anticipated.        *
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Fiscal Analysis

The bill would amend the Development Corporation Act of 1979.  Under this
act, certain eligible cities may create certain types of development
corporations.  One definition of eligibility would be changed to make
eligible any city located in a county with a population of more than
1,100,000 containing more than 20 incorporated municipalities and in
which the combined state and local sales tax rate in the city would not
exceed 8.25 percent. This would allow any municipality in Harris,
Dallas, Bexar, and Tarrant Counties to form development corporations.
The bill also would provide for the continuation of certain eligibility
criteria that would otherwise be repealed on September 1, 1999.
  
Local Government Impact
  
A local governments could experience a reduction in taxable property
value. The loss in property tax revenues would depend on which
municipalities that would become eligible to create development
corporations under the Development Corporation Act of 1979 would
actually choose to enact the provisions of the bill and convert taxable
property to exempt public-use property under Section 4B of the Act.
  
  
Source Agencies:   
LBB Staff:         JK, TL, BR, SM