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
  
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*  No fiscal implication to the State is anticipated.                    *
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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