LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 77th Regular Session April 10, 2001 TO: Honorable Rene Oliveira, Chair, House Committee on Ways & Means FROM: John Keel, Director, Legislative Budget Board IN RE: HB3617 by Moreno, Joe E. (Relating to an exemption from ad valorem taxation of raw cocoa and green coffee that is held in Harris County.), As Introduced ************************************************************************** * No significant fiscal implication to the State is anticipated. * ************************************************************************** The bill would amend Chapter 11 the Tax Code to exempt raw cocoa and green coffee held in Harris county. Because the state is constitutionally prohibited from imposing a state property tax, there would be no direct fiscal impact on the state; however, 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 the bill, in concert with the adoption of a constitutional amendment authorizing the legislature to exempt raw cocoa and green coffee held in Harris County, will cause a reduction in school district taxable values reported to the Commissioner of Education by the Comptroller. The Harris County Appraisal district has reported that in the 2000 tax year, they had 10 accounts that would be exempt under the provisions of this bill. The total taxable value was $10,049,940. School districts are the largest taxing entity in the county. However, though there would be some costs associated with the bill, the fiscal impact on the state and units of local government is not anticipated to be significant, given the fact that the exemption is limited to Harris county. 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