LEGISLATIVE BUDGET BOARD
                              Austin, Texas
                                     
                    FISCAL NOTE, 77th Regular Session
  
                              March 27, 2001
  
  
          TO:  Honorable Tom Ramsay, Chair, House Committee on County
               Affairs
  
        FROM:  John Keel, Director, Legislative Budget Board
  
       IN RE:  HB2743  by Carter (Relating to the maximum tax rate
               allowed on property in emergency service and rural fire
               prevention districts.), As Introduced
  
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*  No fiscal implication to the State is anticipated.                    *
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The bill would amend sections in the Health and Safety Code to increase
the maximum property tax rate for emergency service districts from $0.10
to $0.15 on each $100 of taxable value, and for rural fire prevention
districts, from $0.03 to $0.10.

The bill would also allow an emergency service district board to order an
election to place a property tax increase proposal before the voters in
the form of a binding referendum.  The bill would repeal sections in the
Health and Safety Code relating to Harris County and existing laws
relating to board discretion to call property tax increase elections.

The bill would take effect January 1, 2002, contingent on passage of a
constitutional amendment authorizing an increase in maximum property tax
rates at the November 6, 2001 election. 

Because the state is constitutionally prohibited from imposing a state
property tax, there would be no direct fiscal impact on the state.
  
Local Government Impact
  
The bill would allow increases in property tax rates by some special
service districts above current constitutional and statutory maximums.
The impact to units of local government would depend on the adoption of
a constitutional amendment and local decisions relative to future
property tax rates.
  
  
Source Agencies:   304   Comptroller of Public Accounts
LBB Staff:         JK, DB