LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE
74th Regular Session
March 27, 1995
TO: Honorable Tom Craddick, Chair IN RE: House Bill No. 1201
Committee on Ways & Means By: Romo
House of Representatives
Austin, Texas
FROM: John Keel, Director
In response to your request for a Fiscal Note on House Bill No.
1201 (Relating to allowing the payment of the franchise tax in
quarterly installments.) this office has determined the
following:
The bill would authorize a quarterly payment plan for certain
franchise taxpayers. The bill would allow corporations to pay a
portion on the present May 15 due date and remaining amounts on
the following August 15, November 15, and February 15.
The bill provides no requirement that the quarterly payments be
equal to one-fourth of the corporation's liability.
The absence of this requirement would mean that the bulk of
corporate payment amounts would be made on the last of the
quarterly payment dates...the February 15 date following the
present May 15 payment date.
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
Year Gain/(Loss) from
General Revenue
Fund 001
1996 ($534,915,000)
1997 (29,949,000)
1998 (25,189,000)
1999 (41,441,000)
2000 (42,630,000)
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, CT, DF