LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 77th Regular Session May 10, 2001 TO: Honorable Rene Oliveira, Chair, House Committee on Ways & Means FROM: John Keel, Director, Legislative Budget Board IN RE: SB174 by Duncan (Relating to the exemption from ad valorem taxation of tangible personal property held at certain locations only temporarily for assembling, manufacturing, processing, or other commercial purposes.), As Engrossed ************************************************************************** * No fiscal implication to the State is anticipated. * ************************************************************************** Currently, Article VIII, Section 1-j of the Texas Constitution and Section 11.251 of the Tax Code provide for a "freeport exemption." The exemption, which may be granted at the option of each city, county, school district, or junior college district, exempts goods, wares, ores, raw materials and other types of inventory that are brought into or acquired in the state and transported out of the state within 175 days of acquisition. A self-enacting constitutional amendment, such as SJR 6, which this bill could implement, could cause revenue losses to taxing units that granted the new exemption. Because this bill would not become effective without a constitutional amendment, and because SJR 6 would be self-enacting, this bill would have no fiscal implications. Local Government Impact No fiscal implication to units of local government is anticipated. Source Agencies: 304 Comptroller of Public Accounts LBB Staff: JK, SD, BR