LEGISLATIVE BUDGET BOARD
                          Austin, Texas

                           FISCAL NOTE
                       74th Regular Session

                          April 12, 1995



 TO:     Honorable Tom Craddick, Chair          IN RE: Committee Substitute
         Committee on Ways & Means                              for House
         House of Representatives               Bill No. 624
         Austin, Texas









FROM: John Keel, Director

In response to your request for a Fiscal Note on House Bill No.
624 (relating to the payment, and procedures to enforce payment,
of taxes and fees collected by the comptroller; providing
penalties) this office has determined the following:

This bill would amend the Tax Code to state that an individual
who controls or supervises the collection of tax or money from
another person, or an individual who controls or supervises the
accounting for and paying over of the tax or money, and who
willfully fails to pay or cause to be paid the tax or money would
be liable as a responsible individual for an amount equal to the
tax or money not paid or caused to be paid.  The liability
imposed would be in addition to any other penalty provided by
law.  The dissolution of a corporation, association, limited
liability company, or partnership would not affect a responsible
individual's liability.  The district courts of Travis County
would have  exclusive, original jurisdiction of a suit arising
under this section.

The Comptroller would be authorized to impose a penalty of five
percent of tax due on a person who is required to remit the tax
to the Comptroller by means of electronic funds transfer and does
not do so.  This penalty would be in addition to any other
penalty provided by law.

The probable fiscal implication of implementing the provisions of
the bill during each of the first  five years following passage    




is estimated as follows:
     

 

          Fiscal  Probable Revenue     Probable Revenue 
          Year       Gain to the      Gain to the State 
                   General Revenue     Highway Fund 006 
                      Fund 001                          
                                                        
          1996           $20,800,000          $1,000,000
          1997            20,800,000           1,000,000
                                                        
          1998            20,800,000           1,000,000
                                                        
          1999            20,800,000           1,000,000
          2000            20,800,000           1,000,000
                                                        
                                                        
                                                        
       Similar annual fiscal implications would continue as long as the
provisions of the bill are in effect.

No fiscal implication to units of local government is
anticipated.


Source:   Comptroller of Public Accounts
          LBB Staff: JK, SM, DF