LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 77th Regular Session February 5, 2001 TO: Honorable Rene Oliveira, Chair, House Committee on Ways & Means 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 Introduced ************************************************************************** * No significant fiscal implication to the State is anticipated. * ************************************************************************** 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, SD, WP, BR