LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE 74th Regular Session March 6, 1995 TO: Honorable John Montford, Chair IN RE: Committee Substitute Committee on Finance forSenate Bill Senate 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 of and procedures to enforce payment of taxes and fees collected by the comptroller) this office has determined the following: This bill would implement the Comptroller's Gaining Ground Recommendation GG17 by amending the Tax Code to state that a person who receives or collects a tax or any money represented to be a tax from another person holds the amount so collected in trust for the benefit of the state and is liable to the state for the full amount collected plus any accrued penalties and interest on the amount collected. For the purposes of this section, a "person" includes an officer, manager, director, or employee of a corporation, association, or limited liability company or member of a partnership who, as an officer, manager, director, employee, or member, is under a duty to perform an act with respect to the collection, accounting, or payment of a tax. 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 penalty would be in addition to any other penalty provided by law. The law promulgated by this bill would enable the Comptroller to more efficiently and equitably administer, collect, and enforce the revenues for which the Comptroller is responsible. 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 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 significant fiscal implication to units of local government is anticipated. Source: Comptroller of Public Accounts LBB Staff: JK, SM, DF