LEGISLATIVE BUDGET BOARD
                              Austin, Texas
                                     
                    FISCAL NOTE, 77th Regular Session
  
                               May 24, 2001
  
  
          TO:  Honorable James E. "Pete" Laney, Speaker of the House,
               House of Representatives
  
        FROM:  John Keel, Director, Legislative Budget Board
  
       IN RE:  HB1392  by Keffer (Relating to certain ad valorem tax
               exemptions.), As Passed 2nd House
  
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*  No significant fiscal implication to the State is anticipated.        *
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The bill would amend Section 11.43 and repeal Section 11.182(c) of the
Tax Code to change the exemption application for Community Housing
Development Organizations (CHDO) to a one-time application.  Under
current law, the application must be filed annually.

To supplement the one-time application process, the bill would require a
CHDO to file with the chief appraiser a list of properties acquired or
sold during the preceding year.  The list would have to be provided on a
form promulgated by the Comptroller and it would be due by March 31 of
each year.

The number of eligible organizations not currently utilizing an exemption
because of not re-applying is unknown.  Likewise, the number of
organizations that might lose their eligibility but keep the exemption,
because of the proposed one-time application process, cannot be
predicted.  However, under section 11.43 (c) of the Tax Code, the chief
appraiser may require a person allowed the exemption in a prior year to
file a new application to confirm their current qualification for the
exemption. Therefore, due to this provision, no significant fiscal
implication to the State or units of local government is anticipated.
  
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, BR