HB 388

86(R) - 2019
House Ways & Means
House Ways & Means

Companion Bill

SB 2345

Vote Recommendation

  • Neutral
  • Neutral
  • Neutral
  • Neutral
  • Neutral


Jim Murphy

Bill Caption

Relating to the exemption from ad valorem taxation of real property leased to and used by certain schools.

Fiscal Notes

Estimated Two-year Net Impact to General Revenue Related Funds for HB388, Committee Report 1st House, Substituted: a positive impact of $192,000 through the biennium ending August 31, 2021, contingent upon passage of a constitutional amendment authorizing the exemption. Additionally, there would be a negative impact of ($16,356,000) for the biennium ending 2023.

The bill would make no appropriation but could provide the legal basis for an appropriation of funds to implement the provisions of the bill.

Bill Analysis

HB 388 would create a tax exemption on portions of real property that a person owns and leases to an open-enrollment charter school. The bill would additionally require the leaser to reduce the school's rent as an equal amount to the tax exemption if the lease agreement requires the school to pay the property taxes.

Vote Recommendation Notes

While we oppose special tax exemptions in general, we note that there is already an exemption for property that is leased to a traditional public school. This bill would treat property that is leased to an open-enrollment charter school the same as property that is leased to a traditional public school. For these reasons we remain neutral on HB 388.