Table 1

Table 22

Harris County, Texas

Table of Tax Rates

(Unaudited)

The following table shows the ad valorem tax rates per $100 of assessed value levied by the County for each of the years 1999 through 2003. The tax year of the County is the calendar year. In addition to the County’s ad valorem taxes, the Commissioners Court levies taxes on property in the County on behalf of the Harris County Flood Control District, the Port of Houston Authority and the Harris County Hospital District. The County Tax Assessor-Collector collects ad valorem taxes for the Harris County Flood Control District, the Port of Houston Authority and the Harris County Hospital District using the same property values as the County, except that the rolling stock of railroads and intangible properties of railroads and certain common carriers are taxable only by the County.

(a) The County’s policy and practice has been to provide for payment of debt service on the Toll Road Authority Tax Bond debt from toll revenues and certain other funds, and no tax has to date been collected to provide for such debt service. (See COUNTY AD VALOREM TAX DEBT -- Table of Tax Debt Outstanding.)

(b) The ad valorem tax rate that the Commissioners Court may levy on behalf of the Harris County Flood Control District is limited by law to a maximum of $0.30 per $100 of assessed value.

(c) The ad valorem tax rate that the Commissioners Court may levy on behalf of the Port of Houston Authority to pay that authority’s tax bonds is by law unlimited.

(d) The Harris County Hospital District ad valorem tax rate is limited to $0.75 per $100 of assessed value. The tax rates for 1999 – 2003 were for maintenance and operation only.

Table 23

Harris County, Texas

Table of Assessed Values and Tax Rates

(Unaudited)

The following table shows the County’s assessed values and tax rates for each of the years 1994 through 2003. Taxable property is assessed at 100% of the appraised value as established by the Appraisal District.

(a) Net of exemptions.

(b) The County, either by action of the Commissioners Court or through a process of petition and referendum initiated by its residents, may grant partial exemptions for residential homesteads of persons 65 years or older and of certain disabled persons. The Commissioners Court granted an exemption of residential homesteads for persons 65 years of age or older and disabled persons of up to $156,240 of assessed value for 2003. If requested, the County must grant exemptions to disabled veterans or certain surviving dependents of disabled veterans or of persons who died while on active duty in a dollar range of $5,000 to $12,000 of assessed value, depending on the extent of the disability. The County may also authorize exemptions of up to 20% of the value of residential homesteads from ad valorem taxation. The Commissioners Court granted a 20% exemption for 2003. If ad valorem taxes have been pledged for the payment of debt prior to the adoption of any such partial exemptions, taxes may be assessed and collected against the exempt value of such homesteads if the cessation of the levy against such exempt value would impair the obligation of the contract by which the debt was created.

(c) The County and certain taxing units located within the County may enter into tax abatement agreements to encourage economic development. Under such agreements, a property owner agrees to construct certain improvements on its property. The County or taxing unit (as applicable) in turn agrees not to levy a tax on all or part of the increased value attributable to the improvements until the expiration of the agreement. Such abatement agreement may last for a period of up to 10 years. The estimated value of property in the County that was subject to tax abatement on February 16, 2004 is approximately $1.7 billion and, such value at the end of the abatement period is currently estimated to be approximately $2.5 billion. Assessed value figures herein are net of abatements.

(d) Estimates based upon HCAD tax supplement as of February 16 for the tax year.

Table 24

Harris County, Texas

Table of Tax Levies, Collections and Delinquencies

(Unaudited)

(Amounts in Thousands)

The table below sets forth a comparison of the ad valorem taxes levied and collected by the County for the tax years 1994 through 2003.

(a) Current Tax Collection is defined as taxes levied in any year which are collected beginning October 1 of such year through June 30 of the following year are shown as current collections. Such amounts include that portion of the current levy coalesced on or after February 1, which is the date taxes become legally delinquent. The amounts in this column are reflected as of February 28/29 of the fiscal year for that tax year.

(b) Collections for prior years’ levies of taxes during the period beginning July 1 of the year shown and ending on June 30 of the following year are shown as delinquent collections which apply to prior tax years and are collected for multiple tax years. The accumulation of all unpaid ad valorem taxes which were due at the end of the collection period beginning on July 1 of the year shown and ending on June 30 of the following year is shown as delinquent taxes receivable. The County is barred from bringing suit for collection of delinquent personal property taxes after four years from the time such taxes become delinquent. Real property taxes, until paid, constitute a lien against the property. The County is barred from bringing suit for collection of delinquent personal property and real property taxes annually. As of August 26, 1991, pursuant to Section 33.05, subsection (c) of the Property Tax Code, the County Tax Assessor-Collector is required to cancel and remove from the delinquent tax roll a tax on real property that has been delinquent for more than 20 years or a tax on personal property that has been delinquent for more than 10 years. The delinquent taxes may not be canceled if litigation concerning the taxes is pending.