LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 89TH LEGISLATIVE REGULAR SESSION April 4, 2025 TO: Honorable Morgan Meyer, Chair, House Committee on Ways & Means FROM: Jerry McGinty, Director, Legislative Budget Board IN RE: HB2723 by Cunningham (relating to the requirement that a person submit an application for an exemption from ad valorem taxation for certain property used for human burial.), Committee Report 1st House, Substituted No significant fiscal implication to the State is anticipated. The bill would require a chief appraiser to grant a property tax exemption for a qualifying cemetery if: 1) a person does not apply for the exemption; 2) the chief appraiser knows or should know based on a reasonable inspection of the property that the property is a cemetery; and 3) the owner of the property is not identifiable. To qualify for the property tax exemption a cemetery must be used exclusively for human burial and not for profit. The bill would remove the requirement to apply for the exemption and grants the chief appraiser the duty to make the decision based on local knowledge or reasonable inspection of the property.For qualifying cemeteries that are currently taxed because there is no application on file, this would create a taxable value loss to the units of local government and the state via the school funding formula. It could also lead to some cemeteries receiving the exemption when they may not be eligible. Overall, no detailed cemetery value information was located and the fiscal impact on the state and units of local government cannot be estimated; however, it is likely not significant. Local Government ImpactNo significant fiscal implication to units of local government is anticipated. Source Agencies: b > td > 304 Comptroller of Public Accounts LBB Staff: b > td > JMc, KK, BRI, SD
LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 89TH LEGISLATIVE REGULAR SESSION
April 4, 2025
TO: Honorable Morgan Meyer, Chair, House Committee on Ways & Means FROM: Jerry McGinty, Director, Legislative Budget Board IN RE: HB2723 by Cunningham (relating to the requirement that a person submit an application for an exemption from ad valorem taxation for certain property used for human burial.), Committee Report 1st House, Substituted
TO: Honorable Morgan Meyer, Chair, House Committee on Ways & Means
FROM: Jerry McGinty, Director, Legislative Budget Board
IN RE: HB2723 by Cunningham (relating to the requirement that a person submit an application for an exemption from ad valorem taxation for certain property used for human burial.), Committee Report 1st House, Substituted
Honorable Morgan Meyer, Chair, House Committee on Ways & Means
Honorable Morgan Meyer, Chair, House Committee on Ways & Means
Jerry McGinty, Director, Legislative Budget Board
Jerry McGinty, Director, Legislative Budget Board
HB2723 by Cunningham (relating to the requirement that a person submit an application for an exemption from ad valorem taxation for certain property used for human burial.), Committee Report 1st House, Substituted
HB2723 by Cunningham (relating to the requirement that a person submit an application for an exemption from ad valorem taxation for certain property used for human burial.), Committee Report 1st House, Substituted
No significant fiscal implication to the State is anticipated.
No significant fiscal implication to the State is anticipated.
The bill would require a chief appraiser to grant a property tax exemption for a qualifying cemetery if: 1) a person does not apply for the exemption; 2) the chief appraiser knows or should know based on a reasonable inspection of the property that the property is a cemetery; and 3) the owner of the property is not identifiable. To qualify for the property tax exemption a cemetery must be used exclusively for human burial and not for profit. The bill would remove the requirement to apply for the exemption and grants the chief appraiser the duty to make the decision based on local knowledge or reasonable inspection of the property.For qualifying cemeteries that are currently taxed because there is no application on file, this would create a taxable value loss to the units of local government and the state via the school funding formula. It could also lead to some cemeteries receiving the exemption when they may not be eligible. Overall, no detailed cemetery value information was located and the fiscal impact on the state and units of local government cannot be estimated; however, it is likely not significant.
Local Government Impact
No significant fiscal implication to units of local government is anticipated.
Source Agencies: b > td > 304 Comptroller of Public Accounts
304 Comptroller of Public Accounts
LBB Staff: b > td > JMc, KK, BRI, SD
JMc, KK, BRI, SD