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: SB862 by Staples (Relating to the exemption from ad valorem taxation for freeport goods.), As Engrossed ************************************************************************** * No significant fiscal implication to the State is anticipated. * ************************************************************************** The bill would amend Sections 11.251 and 11.43 of the Tax Code to allow additional time for property owners to deliver requested information to the chief appraiser concerning an application for a freeport exemption. An owner also would be allowed to file a late freeport exemption application up until the Appraisal Review Board approved the appraisal records. A late application would be subject to the same 10 percent penalty. There could be some loss of taxable value associated with the passage of this bill, depending on the number of applicants who would provide late information and file late applications and the value of the subject property. There also could be a gain of local revenue resulting from the proposed penalties associated with late information submissions and late exemption applications. In 1999, $5.7 billion of taxable property qualified as freeport property resulting in a tax levy loss to school districts of $82.7 million, which under the current school funding formula is passed on to the state after a one year lag. While the provisions of the bill provide additional time for providing information, it does not create significant new freeport exemption opportunities and should not result in a significant fiscal impact on the state or units of local government. 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, DB, BR