LEGISLATIVE BUDGET BOARD
                              Austin, Texas
                                     
                    FISCAL NOTE, 77th Regular Session
  
                              April 19, 2001
  
  
          TO:  Honorable Rene Oliveira, Chair, House Committee on Ways &
               Means
  
        FROM:  John Keel, Director, Legislative Budget Board
  
       IN RE:  HB1468  by Pitts (Relating to the calculation of ad
               valorem tax rates for certain taxing units.), Committee
               Report 1st House, Substituted
  
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*  No fiscal implication to the State is anticipated.                    *
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The bill would amend Chapter 26 of the Tax Code to allow property taxing
units located in a county with a population of less than 500,000, other
than school districts, to exclude from effective and rollback rate
calculations the portion of appraised real property corresponding to the
portion of the tax increment that the taxing unit has agreed to pay into
a tax increment financing fund.

Since the bill would exclude school districts from its provisions, there
would be no impact on taxable values reported to the Commissioner of
Education for use in school funding formulas.  Therefore, there would be
no fiscal impact on the state.

The bill would allow increases to a taxing unit's effective and rollback
rates not now allowed under Chapter 26.  Under current law, when a
taxing unit's governing body adopts a tax rate that exceeds the unit's
rollback rate, taxpayers may petition for an election to limit the
unit's tax rate to the rollback rate.  It is not anticipated that the
number of taxing units that might act under the bill's provisions will
lead to a significant fiscal impact on units of local 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