LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 77th Regular Session May 10, 2001 TO: Honorable Teel Bivins, Chair, Senate Committee on Education FROM: John Keel, Director, Legislative Budget Board IN RE: HB2978 by Dukes (Relating to the criteria for designating a residence homestead as a historic site for purposes of exemption from ad valorem taxation.), As Engrossed ************************************************************************** * No significant fiscal implication to the State is anticipated. * ************************************************************************** The bill would amend Section 11.24 of the Tax Code, relating to the criteria for designating a residence homestead as an historic site for purposes of exemption from property taxation. The bill would allow as a criterion for designation that the preceding owner was related to the current owner within the first degree of consanguinity. Section 403.302 of the Government Code requires the Comptroller to conduct a property value study to determine the total taxable value for each school district. Total taxable value is an element in the state's school funding formula. Passage of this bill could cause a change in school district taxable values reported to the Commissioner of Education by the Comptroller. In 1999, approximately $55 million in valuation loss was reported by school districts resulting from exemptions for historic site exemptions. However, it is not anticipated that the provisions of this bill would result in any significant increase in the total exemption value loss. Local Government Impact No significant fiscal implication to units of local government is anticipated. Source Agencies: 304 Comptroller of Public Accounts LBB Staff: JK, CT, SD, BR