LEGISLATIVE BUDGET BOARD
                              Austin, Texas
                                     
                    FISCAL NOTE, 77th Regular Session
  
                              April 19, 2001
  
  
          TO:  Honorable Frank Madla, Chair, Senate Committee on
               Intergovernmental Relations
  
        FROM:  John Keel, Director, Legislative Budget Board
  
       IN RE:  SB1736  by Cain (Relating to the waiver of penalties and
               interest if an error of a taxing unit or appraisal
               district results in failure to pay an ad valorem tax.),
               Committee Report 1st House, as amended
  
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*  No significant fiscal implication to the State is anticipated.        *
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The bill would amend Section 33.011 of the Tax Code to require a taxing
unit's governing body to waive interest (currently only penalties are
waived) if an act or omission of a taxing unit or appraisal district
officer, employee or agent caused or resulted in a taxpayer's failure to
pay property taxes before the delinquency date and the tax was paid not
later than the third anniversary (currently within 21 days) of the date
the taxpayer knew or should have known of the delinquency. 

The bill would take effect June 30, 2001.
  
Local Government Impact
  
Waiving interest and allowing the taxpayer three years to pay the tax
could result in revenue losses to taxing units in instances where
interest would not otherwise be waived under current law.  The amount of
such revenue losses to units of local government would depend on the
incidence of occurrence and the amount at issue.
  
  
Source Agencies:   304   Comptroller of Public Accounts
LBB Staff:         JK, DB, WP, BR