LEGISLATIVE BUDGET BOARD
                              Austin, Texas
                                     
                    FISCAL NOTE, 77th Regular Session
  
                              April 24, 2001
  
  
          TO:  Honorable Rene Oliveira, Chair, House Committee on Ways &
               Means
  
        FROM:  John Keel, Director, Legislative Budget Board
  
       IN RE:  SB658  by Barrientos (Relating to the exemption from ad
               valorem taxation of property of a disabled veteran or the
               surviving spouse or children of a deceased disabled
               veteran or member of the armed forces who dies while on
               active duty.), As Engrossed
  
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*  No significant fiscal implication to the State is anticipated.        *
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The bill would amend Section 11.22 of the Tax Code to conform to the
Texas Constitution with respect to the exemption available to disabled
veterans.  The bill also would extend to each surviving unmarried child
(under the age of 30) of an individual who died while on active duty a
$5,000 exemption.  Current law requires that the exemption be divided by
the number of surviving children under the age of 18.

Passage of the bill could cause a change in school district taxable
values reported to the Commissioner of Education by the Comptroller,
producing a property value and revenue loss to local governments.

For the 1999 tax year, school districts reported $1,061,349,828 in
taxable value losses attributable to the disabled veterans' exemption;
cities reported $822,956,209; and counties, $1,555,685,177.  There were
129,468 qualified disabled veteran's claiming the exemption in 1999,
with an average school district exemption value of $8,206.  Depending on
the number of surviving children of individuals who died on active duty,
and on the number of disabled veterans' surviving children who applied
for and received the expanded exemption there could be a revenue loss to
the state and units of local government.  However, it is not anticipated
that this would lead to a significant fiscal impact on the state's
school funding appropriations level.
  
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, RB, BR