LEGISLATIVE BUDGET BOARD

Austin, Texas

FISCAL NOTE, 81ST LEGISLATIVE REGULAR SESSION

May 2, 2009

TO:	Honorable Rene Oliveira, Chair, House Committee on Ways & Means
FROM:	John S. O'Brien, Director, Legislative Budget Board
IN RE:	HB2460 by Harper-Brown (Relating to the exemption from ad valorem tax of certain property owned by a religious organization.), As Introduced

No significant fiscal implication to the State is anticipated.

The bill would amend Chapter 11 of the Tax Code, regarding taxable property and exemptions.

The bill would amend the listed tax exemptions available for property owned by a religious organization to include vacant real property that immediately before becoming vacant was used exclusively as a residence for clergy.

The bill would exempt vacant residences that were previously used by clergy and that are owned by religious organizations, creating a cost to taxing units and to the state through the operation of the school funding formulas. Because the new exemption would primarily affect homes that are temporarily vacant because of turnover in clergy, the fiscal impact would not be significant.

The bill would take effect on January 1, 2010.

Local Government Impact

No significant fiscal implication to units of local government is anticipated.

Source Agencies:

304 Comptroller of Public Accounts

LBB Staff:

JOB, MN, SD, SJS