LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 77th Regular Session March 20, 2001 TO: Honorable Carlos F. Truan, Chair, Senate Committee on Veteran Affairs & Military Installations FROM: John Keel, Director, Legislative Budget Board IN RE: SB1558 by Madla (Relating to defense base development authorities.), As Introduced ************************************************************************** * Adoption of this bill could result in a reduction in school * * district taxable values, resulting in an increase in state public * * education costs. * ************************************************************************** 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. 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, RB, DB, WP, BR