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
  
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*  No fiscal implication to the State is anticipated.                    *
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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