LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 77th Regular Session
February 1, 2001
TO: Honorable Rene Oliveira, Chair, House Committee on Ways &
Means
FROM: John Keel, Director, Legislative Budget Board
IN RE: HB277 by Berman (Relating to the repeal of the
additional ad valorem taxes imposed as a result of
certain changes in the use of open-space land appraised
as agricultural land.), As Introduced
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* Estimated Two-year Net Impact to General Revenue Related Funds for *
* HB277, As Introduced: impact of $0 through the biennium ending *
* August 31, 2003. *
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General Revenue-Related Funds, Five-Year Impact:
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* Fiscal Year Probable Net Positive/(Negative) *
* Impact to General Revenue Related *
* Funds *
* 2002 $0 *
* 2003 0 *
* 2004 (32,610,000) *
* 2005 (33,588,000) *
* 2006 (34,596,000) *
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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 General Gain/(Loss) Gain/(Loss) Gain/(Loss) *
* Revenue Fund from School from Counties from Cities *
* 0001 Districts *
* 2002 $0 $0 $0 $0 *
* 2003 0 (32,610,000) (8,605,000) (386,000) *
* 2004 (32,610,000) (33,588,000) (8,863,000) (398,000) *
* 2005 (33,588,000) (34,596,000) (9,129,000) (411,000) *
* 2006 (34,596,000) (35,634,000) (9,403,000) (422,000) *
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Fiscal Analysis
The bill would amend Chapter 23 of the Tax Code to repeal Section 23.55,
relating to the rollback tax provisions applicable to the appraisal of
agricultural land under Subchapter D.
The bill would not repeal the rollback tax provisions applicable to land
designated for agricultural use under Subchapter C or for timber land
appraised under Subchapter E.
Methodology
The Comptroller's Property Tax Division staff used tax year 1993
information reported by cities, counties, and school districts to
estimate the potential loss to local governments. 1993 is the last year
taxing units reported rollback taxes collected. The 1993 tax year
rollback tax numbers were trended upward, based on historical property
tax levy increases, to reflect estimated losses to local governments for
fiscal 2002-2006. The Comptroller's Property Tax Division does not
receive or maintain rollback tax information on rollback taxes received
by special districts in Texas.
Section 403.302 of the Government Code requires the Comptroller 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.
Local Government Impact
Tax revenue losses to local taxing units are reflected in the above
tables.
Source Agencies: 304 Comptroller of Public Accounts
LBB Staff: JK, SD, BR