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