LEGISLATIVE BUDGET BOARD

Austin, Texas

FISCAL NOTE, 78TH LEGISLATIVE REGULAR SESSION

May 14, 2003

TO:	Honorable Teel Bivins, Chair, Senate Committee on Finance
FROM:	John Keel, Director, Legislative Budget Board
IN RE:	HB1278 by Zedler (Relating to an exemption from ad valorem taxation for property owned or used by a religious organization for purposes of expanding a religious facility or constructing a new religious facility and to municipal platting requirements and zoning regulations applicable to certain property owned or used by a religious organization.), As Engrossed

No significant fiscal implication to the State is anticipated.

The bill would amend Section 11.20 of the Tax Code to exempt from property taxation property owned by a church or religious society that owned an actual place of worship, if the property was owned for the purpose of expanding an existing place of worship, constructing a new place of worship or was leased for use as a school as defined by Section 11.21, Tax Code, and the property yielded no revenue.

Local Government Impact

Passage of the bill could result in an undetermined amount of lost revenue to units of local government. The amount of loss would depend on the number of religious organizations qualifying for the expanded exemption and the market value of the subject properties that would be exempted under the proposed language.

Source Agencies:

304 Comptroller of Public Accounts

LBB Staff:

JK, SD, WP, BR