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
  
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*  No significant fiscal implication to the State is anticipated.        *
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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