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:HB2865 by Strama (Relating to the exemption from ad valorem taxation of property used by a charitable organization that provides access to affordable financial products and services to certain individuals.), As Introduced To the extent that additional property owned by charitable organizations would be exempt, the bill would create a cost to the state through the operation of the school funding formulas. The bill would re-enact and amend Section 11.18(d) of the Tax Code, relating to the exemption from property taxation of property used by a charitable organization. The bill would add the provision of access to affordable financial products and services for low-income individuals and under-served communities by certain certified community development financial institutions that are exempt from federal income taxation to the list of charitable functions that would enable the charitable organization to qualify for the exemption. To the extent that additional property owned by charitable organizations would be exempt, the bill would create a cost to local taxing units and to the state through the operation of the school funding formulas. No information is available regarding the amount or value of property owned by certified community development financial institutions that would be exempted by the bill, so the fiscal impact cannot be estimated. The bill would take effect on January 1, 2010. Local Government Impact To the extent that additional property owned by charitable organizations would be exempt, the bill would create a cost to local taxing units. No information is available regarding the amount or value of property owned by certified community development financial institutions that would be exempted by the bill, so the fiscal impact cannot be estimated. Source Agencies:304 Comptroller of Public Accounts LBB Staff: JOB, MN, SD, SJS
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:HB2865 by Strama (Relating to the exemption from ad valorem taxation of property used by a charitable organization that provides access to affordable financial products and services to certain individuals.), As Introduced
TO: Honorable Rene Oliveira, Chair, House Committee on Ways & Means
FROM: John S. O'Brien, Director, Legislative Budget Board
IN RE: HB2865 by Strama (Relating to the exemption from ad valorem taxation of property used by a charitable organization that provides access to affordable financial products and services to certain individuals.), As Introduced
Honorable Rene Oliveira, Chair, House Committee on Ways & Means
Honorable Rene Oliveira, Chair, House Committee on Ways & Means
John S. O'Brien, Director, Legislative Budget Board
John S. O'Brien, Director, Legislative Budget Board
HB2865 by Strama (Relating to the exemption from ad valorem taxation of property used by a charitable organization that provides access to affordable financial products and services to certain individuals.), As Introduced
HB2865 by Strama (Relating to the exemption from ad valorem taxation of property used by a charitable organization that provides access to affordable financial products and services to certain individuals.), As Introduced
To the extent that additional property owned by charitable organizations would be exempt, the bill would create a cost to the state through the operation of the school funding formulas.
To the extent that additional property owned by charitable organizations would be exempt, the bill would create a cost to the state through the operation of the school funding formulas.
The bill would re-enact and amend Section 11.18(d) of the Tax Code, relating to the exemption from property taxation of property used by a charitable organization. The bill would add the provision of access to affordable financial products and services for low-income individuals and under-served communities by certain certified community development financial institutions that are exempt from federal income taxation to the list of charitable functions that would enable the charitable organization to qualify for the exemption. To the extent that additional property owned by charitable organizations would be exempt, the bill would create a cost to local taxing units and to the state through the operation of the school funding formulas. No information is available regarding the amount or value of property owned by certified community development financial institutions that would be exempted by the bill, so the fiscal impact cannot be estimated. The bill would take effect on January 1, 2010.
The bill would re-enact and amend Section 11.18(d) of the Tax Code, relating to the exemption from property taxation of property used by a charitable organization. The bill would add the provision of access to affordable financial products and services for low-income individuals and under-served communities by certain certified community development financial institutions that are exempt from federal income taxation to the list of charitable functions that would enable the charitable organization to qualify for the exemption.
To the extent that additional property owned by charitable organizations would be exempt, the bill would create a cost to local taxing units and to the state through the operation of the school funding formulas. No information is available regarding the amount or value of property owned by certified community development financial institutions that would be exempted by the bill, so the fiscal impact cannot be estimated.
The bill would take effect on January 1, 2010.
Local Government Impact
To the extent that additional property owned by charitable organizations would be exempt, the bill would create a cost to local taxing units. No information is available regarding the amount or value of property owned by certified community development financial institutions that would be exempted by the bill, so the fiscal impact cannot be estimated.
Source Agencies: 304 Comptroller of Public Accounts
304 Comptroller of Public Accounts
LBB Staff: JOB, MN, SD, SJS
JOB, MN, SD, SJS