LEGISLATIVE BUDGET BOARD
                              Austin, Texas
                                     
                    FISCAL NOTE, 77th Regular Session
  
                               May 11, 2001
  
  
          TO:  Honorable Frank Madla, Chair, Senate Committee on
               Intergovernmental Relations
  
        FROM:  John Keel, Director, Legislative Budget Board
  
       IN RE:  HB3001  by Uresti (Relating to effective dates for tax
               abatements.), As Engrossed
  
**************************************************************************
*  No fiscal implication to the State is anticipated.                    *
**************************************************************************
  
This bill would amend Section 312.204 of the Tax Code to allow an
abatement agreement to take effect on January 1 of the next tax year
following the substantial completion of improvements or repairs required
by the agreement.

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
  
By allowing tax abatement agreements to take effect after improvements
have been made and value added to the taxable real property located in
the reinvestment zone, passage of this bill could affect the incidence
and timing of tax abatement exemptions granted by taxing units.
  
  
Source Agencies:   304   Comptroller of Public Accounts
LBB Staff:         JK, DB, SD, WP, BR