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