TO: | Honorable Jimmie Don Aycock, Chair, House Committee on Public Education |
FROM: | Ursula Parks, Director, Legislative Budget Board |
IN RE: | HB3776 by Isaac (Relating to consideration of payments made in lieu of ad valorem taxes.), As Introduced |
The bill would require that payments in lieu of taxes (PILTs) made to school districts by a property owner exempt from ad valorem property taxes who receives low income housing tax credits be included in calculations of local maintenance and operations tax revenue in the determination of the cost of attendance credits to a district required to reduce its property wealth per student pursuant to Education Code, Chapter 41.
The value of PILTs made by property owners that would qualify for inclusion in the calculation of the cost of attendance credits under the provisions of the bill is unknown, and therefore the fiscal impact of the provision cannot be estimated at this time. However, an increase in the amount of maintenance and operations tax revenue for a district subject to the provisions of Education Code, Chapter 41, would tend to increase the cost of attendance credits purchased (recapture) from the state, which would reduce the cost of the state's obligations under the Foundation School Program paid from General Revenue Funds.
Source Agencies: | 304 Comptroller of Public Accounts, 332 Department of Housing and Community Affairs, 701 Central Education Agency
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LBB Staff: | UP, JBi, JSc
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