FISCAL NOTE, 85TH LEGISLATURE 1st CALLED SESSION - 2017
July 24, 2017
TO:
Honorable Dennis Bonnen, Chair, House Committee on Ways & Means
FROM:
Ursula Parks, Director, Legislative Budget Board
IN RE:
HB239 by Capriglione (Relating to the exemption from ad valorem taxation of precious metal held in the Texas Bullion Depository.), As Introduced
Depending on the value of precious metals held in the depository that would be taxable under current law, provisions of the bill exempting precious metals held in the depository from ad valorem taxation would result in an indeterminate loss of local ad valorem tax revenues.
The bill would amend Chapter 11 of Tax Code to provide a property tax exemption for precious metal held in Texas Bullion Depository, regardless of whether the precious metal is held or used for the production of income. The exemption is effective immediately upon qualification and an exemption application is not required.
The bill would provide for an exemption from property taxation for precious metal held in Texas Bullion Depository. As the taxable value of potential holdings is unknown, the fiscal impact cannot be determined.
This bill would take effect January 1, 2018 but only if the constitutional amendment (HJR 38) proposed by the 85th Legislature, 1st Called Session, 2017, authorizing the Legislature to exempt from property taxation precious metal held in the Texas Bullion Depository is approved by the voters.
Local Government Impact
To the extent that precious metals held in the depository would be taxable under current law, provisions of the bill exempting precious metals held in the depository from ad valorem taxation would result in an indeterminate loss of local ad valorem tax revenues. The loss of revenues for an independent school district would be offset by an increased allocation to the district from the Foundation School Program.