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 ************************************************************************** * No fiscal implication to the State is anticipated. * ************************************************************************** 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