80(R) SB 941 - Introduced version

LEGISLATIVE BUDGET BOARD
Austin, Texas

FISCAL NOTE, 80TH LEGISLATIVE REGULAR SESSION


March 15, 2007

TO:	Honorable Steve Ogden, Chair, Senate Committee on Finance

FROM:	John S. O'Brien, Director, Legislative Budget Board

IN RE:	SB941 by Wentworth (Relating to the use of revenue from a tax increment fund to acquire, construct, or reconstruct educational facilities.), As Introduced

No significant fiscal implication to the State is anticipated.

The bill would amend Sections 311.008 and 311.0085 of the Tax Code to allow municipalities to enter into an agreement with a school district to dedicate revenue from a tax increment financing (TIF) fund for acquiring, constructing, or reconstructing an educational facility located in or outside of a reinvestment zone.

The Comptroller of Public Accounts reports that there would be no fiscal impact on the state, as the state is constitutionally prohibited from imposing a state property tax; therefore, fiscal impact of this bill would depend on future actions by municipalities and relative to the execution of TIF agreements involving school facility acquisition and construction. The Comptroller states that real property acquired and used for a public purpose as a result of this bill could be exempted from property taxation, causing a loss in revenue to some taxing units.

The bill would take effect immediately upon enactment, if it receives two-thirds majority votes in each house; otherwise, it would take effect September 1, 2007.

Local Government Impact

It is assumed that a municipality or county would elect to dedicate revenue from the tax increment fund to a school district for acquiring, constructing, or reconstructing an educational facility only if the funds were available.