LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 77th Regular Session
May 10, 2001
TO: Honorable Rene Oliveira, Chair, House Committee on Ways &
Means
FROM: John Keel, Director, Legislative Budget Board
IN RE: SB1558 by Madla (Relating to defense base development
authorities.), As Engrossed
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* Adoption of this bill could result in a reduction in school *
* district taxable values, resulting in an increase in state public *
* education costs. *
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The bill would exempt a leasehold or possessory interest in real property
granted by an authority for a project designated under Chapter 378 of
the Local Government Code (defense base development authorities) from
property taxation. The exemption would last for the period of the lease
or possessory interest. Section 25.07(a), Tax Code, would expire on
September 1, 2007.
The fiscal impact on the state and on local governments in reduced
property tax revenue would vary depending on the number of exemptions
granted and the appraised value of leasehold or possessory interest in
real property. Passage of the bill could cause a reduction in a school
district's taxable values reported to the Commissioner of Education by
the Comptroller. The Texas Education Agency has estimated that as a
general rule, a difference of $1 billion in property valuation would
change state aid requirements by about $14.8 million each year.
Local Government Impact
Local taxing units would experience similar losses in property tax
revenue as those outlined above for school districts.
Source Agencies: 304 Comptroller of Public Accounts
LBB Staff: JK, SD, RB, DB, WP, BR