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 Senate
         House of Representatives               Bill No. 401
         Austin, Texas









FROM: John Keel, Director

In response to your request for a Fiscal Note on Senate Bill No.
401 (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 a person
required to collect, truthfully account for, or pay over a tax
who fails to do so would be liable for a penalty equal to the
total amount of tax, in addition to any other penalty provided by
law.  Also, 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.

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           $21,800,000          $1,000,000
                                                        
                                                        
                                                        

         1997                21,800,000             1,000,000

         1998                21,800,000             1,000,000
         1999                21,800,000             1,000,000

         2000                21,800,000             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