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