LEGISLATIVE BUDGET BOARD
                              Austin, Texas
                                     
                    FISCAL NOTE, 77th Regular Session
  
                              April 11, 2001
  
  
          TO:  Honorable Rene Oliveira, Chair, House Committee on Ways &
               Means
  
        FROM:  John Keel, Director, Legislative Budget Board
  
       IN RE:  HB3201  by Brimer (Relating to exempting certain
               charitable organizations 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 11.18 of the Tax Code to exempt from
property taxation property owned by an organization providing child care
for all-day or part-day.  To qualify for the exemption, the facility
would have to directly utilize charitable funds, state funds, or federal
funds or a combination thereof, without regard to a beneficiary's ability
to pay, or on a sliding fee scale basis.  In addition, the facility
would have to be licensed by the Texas Department of Protective and
Regulatory Services or a Head Start Program.

The bill would address charity child-care centers.  The Comptroller's
Property Tax Division reports that no data are available on ad valorem
taxes paid by these specific entities.  The Comptroller's office
contacted the following appraisal districts, the Dallas Central
Appraisal District (CAD), the Harris CAD, the Bexar (CAD) and Travis
CAD.  They indicated that, for the 2000 tax year, a taxable value of
$344 million for child day care facilities was recorded on their tax
rolls.  Presumably, the charity centers not currently exempt represent
only a very small portion of this amount, therefore, it is not
anticipated that the provisions of this bill will result in a
significant fiscal impact on the state or units of local government.
  
Local Government Impact
  
No significant fiscal implication to units of local government is
anticipated.
  
  
Source Agencies:   530   Department of Protective and Regulatory
                   Services, 304   Comptroller of Public Accounts
LBB Staff:         JK, SD, BR