LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 77th Regular Session April 18, 2001 TO: Honorable Frank Madla, Chair, Senate Committee on Intergovernmental Relations FROM: John Keel, Director, Legislative Budget Board IN RE: SB1711 by Van de Putte (Relating to allowing taxing units to enter into tax abatement agreements with the owners of leasehold interests.), Committee Report 1st House, Substituted ************************************************************************** * No fiscal implication to the State is anticipated. * ************************************************************************** The bill would amend Section 312 of the Tax Code to allow taxing units to enter into a tax abatement agreement with a lessee of real property, located within a reinvestment zone, to exempt a portion of the value of the real property or of the tangible property located on the real property. There would be no cost to the General Revenue Fund, because under current law abated values are included in the Comptroller's determinations of school districts' total taxable values certified to the Commissioner of Education for school funding purposes. Local Government Impact The bill would allow local taxing units to enter into tax abatement agreements with the lessees of real property to exempt a portion of the real property or tangible personal property located on real property. Local governments choosing to enter into the type of agreements proposed by this bill would experience an undetermined amount of revenue loss, depending on the value of property subject to future tax abatement agreements. Source Agencies: 304 Comptroller of Public Accounts LBB Staff: JK, DB, SD, WP, BR