TO: | Honorable Harvey Hilderbran, Chair, House Committee on Ways & Means |
FROM: | John S O'Brien, Director, Legislative Budget Board |
IN RE: | HB1056 by Villarreal (relating to the ad valorem taxation of property used to provide low-income or moderate-income housing.), Committee Report 1st House, Substituted |
Fiscal Year | Probable Net Positive/(Negative) Impact to General Revenue Related Funds |
---|---|
2012 | $0 |
2013 | ($1,139,000) |
2014 | ($1,339,000) |
2015 | ($1,345,000) |
2016 | ($1,351,000) |
Fiscal Year | Probable Savings/(Cost) from Foundation School Fund 193 |
Probable Revenue Gain/(Loss) from School Districts - Net Impact |
Probable Revenue Gain/(Loss) from Counties |
Probable Revenue Gain/(Loss) from Cities |
---|---|---|---|---|
2012 | $0 | $0 | $0 | $0 |
2013 | ($1,139,000) | ($398,000) | ($444,000) | ($660,000) |
2014 | ($1,339,000) | ($213,000) | ($446,000) | ($662,000) |
2015 | ($1,345,000) | ($222,000) | ($448,000) | ($665,000) |
2016 | ($1,351,000) | ($231,000) | ($451,000) | ($667,000) |
The bill would allow certain low-income properties with pending lawsuits to become exempt, thus ending the lawsuits. This fiscal analysis assumes that one-half of the lawsuits would have been decided for the taxpayer under current law. The bill would create a fiscal impact to local taxing units and the state by causing the properties involved in the lawsuits that would have been decided against the taxpayer to become exempt.
Projected tax rates were applied to estimate the levy loss to cities and counties, and to estimate the initial school district loss. Because of the operation of the hold harmless provisions of HB 1, 79th Legislature (2006), the school district cost related to the compressed rate is transferred to the state. The enrichment cost and a portion of the school district debt (facilities) cost are transferred to the state after a one-year lag because of the operation of the enrichment and facilities funding formulas. All costs were estimated over the five year projection period.
Source Agencies: | 304 Comptroller of Public Accounts
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LBB Staff: | JOB, KK, SD, SJS
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