LEGISLATIVE BUDGET BOARD
                              Austin, Texas
                                     
                    FISCAL NOTE, 77th Regular Session
  
                                May 4, 2001
  
  
          TO:  Honorable Frank Madla, Chair, Senate Committee on
               Intergovernmental Relations
  
        FROM:  John Keel, Director, Legislative Budget Board
  
       IN RE:  HB602  by Zbranek (Relating to the creation and financing
               of hospital districts in small counties.), As Engrossed
  
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*  No significant fiscal implication to the State is anticipated.        *
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Under current law, hospital districts may levy a sales and use tax only
for the purpose of lowering property taxes in the district.  A hospital
district levying the sales and use tax to lower property taxes must
account for those taxes in calculating the district's effective and
rollback tax rates.  Under the bill, sales tax proceeds could be used to
service the district's debts and to pay district expenses.  A hospital
district adopting a sales and use tax under the provisions of this bill
would not be required to adjust its effective and rollback rates based
on the additional sales and use tax revenues.
  
Local Government Impact
  
No significant fiscal implication to units of local government is
anticipated.
  
  
Source Agencies:   304   Comptroller of Public Accounts
LBB Staff:         JK, DB, SD, BR