LEGISLATIVE BUDGET BOARD

Austin, Texas

FISCAL NOTE, 79TH LEGISLATIVE REGULAR SESSION

May 2, 2005

TO:	Honorable Frank Madla, Chair, Senate Committee on Intergovernmental Relations
FROM:	John S. O'Brien, Deputy Director, Legislative Budget Board
IN RE:	SB1856 by Deuell (Relating to tax increment financing.), Committee Report 1st House, As Amended

No fiscal implication to the State is anticipated.

The bill would grant counties equal status with municipalities relative to the creation of reinvestment zones and the initiation and administration of tax increment financing agreements.

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. Only tax increment financing agreements created on or before September 1, 1999 are included in the property value study. Since the proposed tax increment financing agreements would not be included in the property value study calculation, no fiscal impact to the state is anticipated for this provision.

Local Government Impact

The fiscal impact of the bill would depend on future actions by counties relative to the designation of reinvestment zones and the execution of tax increment financing agreements.

Source Agencies:

304 Comptroller of Public Accounts

LBB Staff:

JOB, DLBa, WP, DLBe