| TO: | Honorable Harvey Hilderbran, Chair, House Committee on State Cultural and Recreational Resources |
| FROM: | John Keel, Director, Legislative Budget Board |
| IN RE: | HB1770 by Keel (Relating to the creation and taxes of a library district.), As Introduced |
The bill would amend the Local Government Code as it pertains to the creation and taxes of a library district in a municipality that in the past five years had not consented and supported an initial petition to create a library district and did not have a municipal public library accredited for membership in the state library system on the date the initial petition was filed. An election to adopt or increase the local sales and use tax for a library district would be treated also as an election to reduce the tax rate of an industrial development district if any part of the proposed library district were to be within the boundaries of an industrial development 4B corporation and if the combined tax rate resulting from the election were to exceed 2 percent in any location within the proposed district. The tax rate of the industrical development 4B corporation would be reduced proportionately to the rate for the library district so that the combined rate would not exceed 2 percent.
The bill would take effect immediately if it receives a two-thirds vote in each house; otherwise, it would take effect September 1, 2003.
The Comptroller of Public Accounts estimates incurring administrative costs of $135,110 in fiscal year 2004 and of $1,100 per year for the next four fiscal years thereafter, to notify taxpayers of the change and to print the sales tax forms. The agency also estimates a technology impact of $460 in fiscal years 2004 through 2008 for telephone calls.
Because the bill would shift the taxes between local taxing units, there would be no significant fiscal impact on the combined local tax revenue. The 4B development district could lose a portion of its tax revenue as an individual taxing unit.
| Source Agencies: | 304 Comptroller Of Public Accounts
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| LBB Staff: | JK, CL, JB, DLBa
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