LEGISLATIVE BUDGET BOARD

Austin, Texas

FISCAL NOTE, 79TH LEGISLATIVE REGULAR SESSION

May 18, 2005

TO:	Honorable Steve Ogden, Chair, Senate Committee on Finance
FROM:	John S. O'Brien, Deputy Director, Legislative Budget Board
IN RE:	HB2080 by Paxton (Relating to the ad valorem tax status of a license to occupy a dwelling unit in a tax-exempt retirement community.), As Engrossed

Since the bill would exempt from property taxation currently taxable real propriety interests, taxable property values would be reduced.

The bill would provide that a license to occupy a dwelling unit in an exempt retirement community is not a taxable leasehold or other possessory interest in real property.

Since the bill would exempt from property taxation currently taxable real propriety interests, taxable property values would be reduced.  Section 403.302 of the Government Code requires the Comptroller to conduct a property value study to determine the total taxable value for each school district. Total taxable value is an element in the state's school funding formula. Passage of this bill would reduce school district taxable values reported to the Commissioner of Education by the Comptroller.

Local Government Impact

Since the bill would exempt from property taxation currently taxable real propriety interests, taxable property values and the related ad valorem taxes would be reduced for units of local government.

Source Agencies:

304 Comptroller of Public Accounts

LBB Staff:

JOB, SD, WP, DLBe