LEGISLATIVE BUDGET BOARD
                              Austin, Texas
                                     
                    FISCAL NOTE, 77th Regular Session
  
                               May 10, 2001
  
  
          TO:  Honorable Frank Madla, Chair, Senate Committee on
               Intergovernmental Relations
  
        FROM:  John Keel, Director, Legislative Budget Board
  
       IN RE:  HB2306  by Chisum (Relating to the extension of residence
               homestead ad valorem tax exemptions and protection from
               forced sale to a homestead owned by a family-owned
               business.), As Engrossed
  
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*  No fiscal implication to the State is anticipated if the              *
*  constitutional amendment is not approved by the voters.               *
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The bill would apply the standard homestead property tax exemptions to
the residences owned by a family-owned business.  The designation of a
residence owned by a family-owned business as a homestead would be
authorized for purposes of protection from forced sale.

For the purposes of the bill, a family-owned business could be a firm,
corporation, association, partnership, registered limited liability
partnership, limited partnership, limited liability company, holding
company, joint-stock company, joint venture, receivership, trust, or
other business entity where a majority of the ownership rests with
persons related within the second degree of affinity, or within the third
degree of consanguinity.

The bill would take effect on the date on which the constitutional
amendment to extend residence homestead property tax exemptions and
protection from forced sale to a homestead owned by a family-owned
business was approved by voters.  If that amendment were not approved by
the voters, this bill would have no effect.
  
Local Government Impact
  
No fiscal implication to units of local government is anticipated.
  
  
Source Agencies:   304   Comptroller of Public Accounts
LBB Staff:         JK, DB, JO, BR