LEGISLATIVE BUDGET BOARD
                              Austin, Texas
                                     
                    FISCAL NOTE, 77th Regular Session
  
                              April 23, 2001
  
  
          TO:  Honorable Rene Oliveira, Chair, House Committee on Ways &
               Means
  
        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
               Introduced
  
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*  No significant fiscal implication to the State is anticipated.        *
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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, SD, BR