LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 77th Regular Session
April 2, 2001
TO: Honorable Rene Oliveira, Chair, House Committee on Ways &
Means
FROM: John Keel, Director, Legislative Budget Board
IN RE: HJR80 by Uher (Proposing a constitutional amendment to
exempt from ad valorem taxation boats and other equipment
used primarily in the commercial taking or production of
fish, shrimp, shellfish, or other marine life as food
for human consumption.), As Introduced
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* Estimated Two-year Net Impact to General Revenue Related Funds for *
* HJR80, As Introduced: negative impact of $(558,844) through the *
* biennium ending August 31, 2003. *
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General Revenue-Related Funds, Five-Year Net Impact:
****************************************************
* Fiscal Year Probable Net Positive/(Negative) *
* Impact to General Revenue Related *
* Funds *
* 2002 $(80,000) *
* 2003 (478,844) *
* 2004 (493,210) *
* 2005 (508,006) *
* 2006 (523,246) *
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All Funds, Five-Year Impact:
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*Fiscal Probable Probable Probable Probable *
* Year Savings/(Cost) Revenue Revenue Revenue *
* to General Gain/(Loss) to Gain/(Loss) to Gain/(Loss) to *
* Revenue Fund School Districts Cities Counties *
* 0001 *
* 2002 $(80,000) $(478,844) $(154,276) $(136,327) *
* 2003 (478,844) (14,365) (158,904) (140,417) *
* 2004 (493,210) (14,796) (163,671) (144,630) *
* 2005 (508,006) (15,240) (168,581) (148,968) *
* 2006 (523,246) (15,697) (173,639) (153,437) *
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Fiscal Analysis
The resolution would amend Article VIII, Section 19a of the Texas
Constitution to exempt from property taxation boats and other equipment
used primarily in the commercial taking or production of fish, shrimp,
shellfish, or other marine life as food for human consumption.
Passage of the proposed amendment would authorize the Legislature to
provide for the administration of exemptions and to provide eligibility
limitations for an exemption.
Methodology
The Comptroller's office has indicated that passage of this resolution
would result in an undetermined revenue loss to local units of government
because commercial fishing boats and equipment are currently taxable.
The Comptroller's Property Tax Division does not receive or maintain
information from appraisal districts or taxing units that would be
helpful in determining the impact of this bill on units of local
government.
The LBB staff contacted a sample group of coastal appraisal districts to
obtain data on the potential fiscal impact of the resolution. Ken
Wright, Chief Appraiser of Galveston Central Appraisal Districts reported
that the district would lose $14.7 million of taxable value. Michael A.
Amezquita, Chief Appraiser of Cameron Central Appraisal Districts
reported that the district would lose $11.9 million of taxable value.
Other districts reported smaller valuation losses.
Though it is not known how many appraisal districts would experience a
loss in taxable value, this analysis reflects the amounts reported in the
above sample to illustrate the potential fiscal impact on the state and
units of local government. These amounts were trended upward based on
historical property tax levy increases to reflect losses in future fiscal
years.
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. The cost to the state was estimated by assuming
that the state would reimburse school districts for their total levy
losses, including losses for this exemption, after a one-year lag.
The cost to General Revenue in fiscal year 2002 reflects the cost to the
state to publish the resolution.
Local Government Impact
The fiscal impact on units of local government is reflected in the above
table.
Source Agencies: 307 Secretary of State, 304 Comptroller of Public
Accounts
LBB Staff: JK, SD, WP, BR