LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 77th Regular Session March 19, 2001 TO: Honorable Rene Oliveira, Chair, House Committee on Ways & Means FROM: John Keel, Director, Legislative Budget Board IN RE: HB1710 by Brimer (Relating to the financing of certain economic development projects.), As Introduced ************************************************************************** * No significant fiscal implication to the State is anticipated. * ************************************************************************** The bill would amend the Development Corporation Act of 1979 to allow certain cities that have created a development corporation to seek voter approval for additional projects to be funded from a sales and use tax that was previously used to fund an approved sports venue project. A municipality would be authorized to call an election to levy a sales and use tax for approved projects after a previously enacted sales tax was no longer collected. The bill would eliminate the requirement that the principal amount of bonds and other obligations that by their terms are payable in whole or in part from the sales and use tax, together with the amount of the costs of the projects, other than interest on bonds and other obligations for which payment is made in cash directly from the proceeds of the tax, could not exceed $135 million in the aggregate. The bill would allow cities utilizing a 4B economic development sales tax to call an election to approve a sales and use tax to be used to fund additional sports venue projects, subsequent to the retirement of debt on a previous project and the corresponding repeal of the sales tax associated with the servicing of the prior debt. 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, DB, SM