LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 77th Regular Session March 1, 2001 TO: Honorable Rene Oliveira, Chair, House Committee on Ways & Means FROM: John Keel, Director, Legislative Budget Board IN RE: HB1448 by Oliveira (Relating to authorizing the governing body of a municipality or a county to enter into a tax abatement agreement with the owner of a leasehold interest in tax-exempt real property that is located in a reinvestment zone.), As Introduced ************************************************************************** * No fiscal implication to the State is anticipated. * ************************************************************************** The bill would amend Chapter 312 of the Tax Code, relating to the Property Redevelopment and Tax Abatement Act, to allow cities and counties to enter into tax abatement agreements with the owner of a leasehold interest in tax-exempt real property for the exemption of a portion of tangible personal property located on the real property. To be eligible for the abatement, the owner would have to agree to make specific improvements or repairs to the real property. There would be no cost to the General Revenue Fund 0001, because under current law abated values are included in the Comptroller's determinations of school districts' total taxable values certified to the Commissioner of Education for school funding purposes. The bill would allow cities and counties to enter into tax abatement agreements with the owners of tangible personal property located on tax-exempt real property. Local governments choosing to enter into the type of agreements proposed by this bill would experience a revenue loss. The amount of revenue loss would depend on the number of agreements granted and the percentage of abated value. It is not anticipated that the amount of revenue loss would be significant to local units of government. 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, BR