LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 77th Regular Session
Revision 1
April 17, 2001
TO: Honorable Rene Oliveira, Chair, House Committee on Ways &
Means
FROM: John Keel, Director, Legislative Budget Board
IN RE: HB2738 by Turner, Bob (Relating to administration of
change of use of land.), As Introduced
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* Estimated Two-year Net Impact to General Revenue Related Funds for *
* HB2738, As Introduced: impact of $0 through the biennium ending *
* August 31, 2003. *
* *
* The provisions of this bill could impact a school district's *
* effective tax rate use in the state's public school financing *
* formulas, however it is not anticipated that this would result in *
* a significant fiscal impact on the state. *
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The bill would restrict the Section 23.55 rollback tax provision that
currently applies to the appraisal of agricultural land to appraisal
districts established for counties having a population of more than
75,000. The bill would not affect rollback tax provisions applicable to
land designated for agricultural use under Subchapter C, or to timber
land appraised under Subchapter E.
General Revenue-Related Funds, Five-Year Impact:
****************************************************
* Fiscal Year Probable Net Positive/(Negative) *
* Impact to General Revenue Related *
* Funds *
* 2002 $0 *
* 2003 0 *
* 2004 0 *
* 2005 0 *
* 2006 0 *
****************************************************
All Funds, Five-Year Impact:
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*Fiscal Probable Revenue Probable Revenue Probable Revenue *
* Year Gain/(Loss) to Gain/(Loss) to Cities Gain/(Loss) to *
* School Districts Counties *
* 2002 $0 $0 $0 *
* 2003 (6,522,000) (77,200) (1,721,000) *
* 2004 (6,718,000) (79,600) (1,773,000) *
* 2005 (6,919,000) (82,200) (1,826,000) *
* 2006 (7,127,000) (84,400) (1,881,000) *
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Fiscal Analysis
Current law provides that land qualified for agricultural appraisal
incurs an additional tax penalty or "rollback" tax if the land's use is
changed to a non-agricultural use. The penalty is equal to the
difference between the taxes imposed on the land for each of the five
years before the year in which the change of use occurs and the taxes
that would have been imposed on the land if the land had been taxed at
market value, plus interest.
Methodology
The Comptroller's office gathered information from cities, counties, and
school districts for tax year 1993 (the last year taxing units reported
information on rollback taxes) which was used to estimate the potential
loss to local governments. The 1993 tax year rollback tax figures were
projected, based on historical property tax levy increases, to reflect
estimated losses to local governments for the 2002-2006 period.
Approximately 80 percent of the 1993 revenue from rollback taxes was
generated in counties having a population of more than 75,000, based on
2000 census estimates.
Local Government Impact
The fiscal impacts to local governments are shown in the above table.
Source Agencies: 304 Comptroller of Public Accounts
LBB Staff: JK, SD, BR, WP