LEGISLATIVE BUDGET BOARD
                              Austin, Texas
                                     
                    FISCAL NOTE, 77th Regular Session
  
                              March 1, 2001
  
  
          TO:  Honorable Paul Sadler, Chair, House Committee on Public
               Education
  
        FROM:  John Keel, Director, Legislative Budget Board
  
       IN RE:  HB506  by Smith (Relating to the transfer of a limitation
               on school district ad valorem taxes on the residence
               homestead of the surviving spouse of an elderly person
               to a subsequent homestead.), As Introduced
  
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*  No significant fiscal implication to the State is anticipated.        *
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Following the passage of House Joint Resolution 4 (75th Legislature,
1997), 65-and-over homeowners can transfer their tax ceiling to a
different home.  The ceiling on the new home is calculated to provide the
homeowner the same percentage of tax paid as the ceiling on the original
home.

The bill clarifies the provision that surviving spouses aged 55 and older
who move from one homestead to another can continue the tax freeze.
  
Local Government Impact
  
No significant fiscal implication to units of local government is
anticipated.
  
  
Source Agencies:   304   Comptroller of Public Accounts
LBB Staff:         JK, CT, WP, BR