LEGISLATIVE BUDGET BOARD
                              Austin, Texas
                                     
                    FISCAL NOTE, 77th Regular Session
  
                              March 6, 2001
  
  
          TO:  Honorable Frank Madla, Chair, Senate Committee on
               Intergovernmental Relations
  
        FROM:  John Keel, Director, Legislative Budget Board
  
       IN RE:  SB807  by Jackson (Relating to the prerequisites for tax
               abatement by a municipality for properties subject to a
               voluntary cleanup agreement.), As Introduced
  
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*  No fiscal implication to the State is anticipated.                    *
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The bill would repeal the requirement in Section 312.211 of the Tax Code,
which specifies that, to qualify for a municipal property tax abatement
through a voluntary cleanup agreement, the value of real property must be
adversely affected by the release of a hazardous substance or
contaminant according to the two preceding appraisals.

If passed, the bill would not affect school district property values
reported to the Commissioner of Education by the Comptroller of Public
Accounts; therefore, no fiscal implication to the State is anticipated.
  
Local Government Impact
  
Passage of the bill could affect taxable values in cities where the
governing bodies entered into an abatement agreement relating to property
that would not currently qualify for consideration under present law.

The requirements that the real property be:  (1) located in a
reinvestment zone; (2) not in an improvement project financed by tax
increment bonds; and (3) subject of a voluntary cleanup agreement under
Section 361.606 of the Health and Safety Code would remain in effect.
Based on the remaining requirements, no significant fiscal implication
to units of local government is anticipated.
  
  
Source Agencies:   304   Comptroller of Public Accounts
LBB Staff:         JK, DB, BR