LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 76th Regular Session April 8, 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 economic development corporations.), Committee Report 1st House, Substituted ************************************************************************** * No significant fiscal implication to the State is anticipated. * ************************************************************************** Fiscal Analysis The bill would allow any municipality located in Harris, Dallas, Bexar, and Tarrant Counties to form development corporations under the Development Corporation Act of 1979. The bill also would provide for the continuation of certain eligibility criteria that would otherwise be repealed on September 1, 1999.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