LEGISLATIVE BUDGET BOARD
                              Austin, Texas
                                     
                    FISCAL NOTE, 77th Regular Session
  
                              March 26, 2001
  
  
          TO:  Honorable Rene Oliveira, Chair, House Committee on Ways &
               Means
  
        FROM:  John Keel, Director, Legislative Budget Board
  
       IN RE:  HB2965  by Longoria (Relating to allowing municipalities
               and counties to grant tax abatement agreements to
               lessees.), As Introduced
  
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*  No fiscal implication to the State is anticipated.                    *
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The bill would amend Section 312.204 of the Tax Code to allow cities and
counties to enter into a tax abatement agreement with a lessee of real
property, located within a reinvestment zone, to exempt a portion of the
value of the real property or of the tangible property located on the
real property.

There would be no cost to the General Revenue Fund, because under current
law abated values are included in the Comptroller's determinations of
school districts' total taxable values certified to the Commissioner of
Education for school funding purposes.
  
Local Government Impact
  
The bill would allow local governments to enter into tax abatement
agreements with the lessees of real property to exempt a portion of the
real property or tangible personal property located on real property.
Local governments choosing to enter into the type of agreements proposed
by this bill would experience an undetermined amount of revenue loss,
depending on the value of property subject to future tax abatement
agreements.
  
  
Source Agencies:   304   Comptroller of Public Accounts
LBB Staff:         JK, SD, WP, BR