LEGISLATIVE BUDGET BOARD
                              Austin, Texas
                                     
                    FISCAL NOTE, 77th Regular Session
  
                                May 7, 2001
  
  
          TO:  Honorable Frank Madla, Chair, Senate Committee on
               Intergovernmental Relations
  
        FROM:  John Keel, Director, Legislative Budget Board
  
       IN RE:  HB2782  by Villarreal, Mike (Relating to the authority of
               the commissioners court of a county to impose an
               application fee to be paid in connection with an
               application or request for county ad valorem tax
               abatement.), As Engrossed
  
**************************************************************************
*  No fiscal implication to the State is anticipated.                    *
**************************************************************************
  
The bill would amend Section 312.002 of the Tax Code to allow the
commissioners court of a county, in its tax abatement guidelines, to
impose a reasonable fee, not to exceed $1,000, in connection with a
property owner's application or request for a tax abatement.

The bill could result in additional revenue to taxing units choosing to
impose the discretionary fee.  The amount of such revenues would depend
on the number of units imposing such a fee, the number of applicants,
and the amounts of the fees charged.  According to the Comptroller's
Property Tax Division, taxing units reported 276 tax abatement
agreements executed in tax year 2001.  If all taxing units elected to
charge the $1,000 fee, local revenue would increase by $276,000.
  
Local Government Impact
  
No significant fiscal implication to units of local government is
anticipated.
  
  
Source Agencies:   304   Comptroller of Public Accounts
LBB Staff:         JK, DB, SD, WP, BR