Honorable Morgan Meyer, Chair, House Committee on Ways & Means
FROM:
Jerry McGinty, Director, Legislative Budget Board
IN RE:
HB2357 by Morales, Eddie (Relating to the use of a universal data exchange format by appraisal districts and taxing units.), As Introduced
Estimated Two-year Net Impact to General Revenue Related Funds for HB2357, As Introduced: a negative impact of ($958,000) through the biennium ending August 31, 2027.
General Revenue-Related Funds, Five- Year Impact:
Fiscal Year
Probable Net Positive/(Negative) Impact to General Revenue Related Funds
2026
($729,000)
2027
($229,000)
2028
($229,000)
2029
($229,000)
2030
($229,000)
All Funds, Five-Year Impact:
Fiscal Year
Probable Savings/(Cost) from General Revenue Fund 1
Change in Number of State Employees from FY 2025
2026
($729,000)
2.0
2027
($229,000)
2.0
2028
($229,000)
2.0
2029
($229,000)
2.0
2030
($229,000)
2.0
Fiscal Analysis
The bill would amend Chapter 1 of the Tax Code to define "universal data exchange format" and would require the Comptroller to prescribe the universal data exchange format to be used by each appraisal district and taxing unit to maintain and export digital information used to develop the district's appraisal roll or the tax unit's tax roll, by January 1, 2026. Each appraisal district and taxing unit would be required to maintain and export digital information in accordance with the universal data exchange format beginning January 1, 2027.
Methodology
The Comptroller assumes that two additional full-time equivalent (2.0 FTEs) positions would be required to implement the bill. This includes 2.0 Information Technology Business Analysts III to provide assistance to appraisal districts, taxing units, and vendors to implement the universal data exchange format, identify changes in technology that would require updates, and provide continuous support to users of the universal data exchange format. Personnel costs for the two FTEs is estimated to be $229,000 in each fiscal year.
Technology
The Comptroller estimates one-time IT costs of $500,000 in fiscal year 2026 to contract with IT professionals with expertise in prescribing a universal data exchange format that would allow digital information to be exchanged between one computer system and any other computer system with limited or no reformatting, and assist with correctly describing the universal data exchange format in rule.
Local Government Impact
The bill would require appraisal districts and taxing units to comply with the universal data exchange format prescribed the Comptroller for the maintenance and export of digital information used to develop the district's appraisal roll or the taxing unit's tax roll.