LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE
74th Regular Session
March 20, 1995
TO: Honorable John Whitmire, Chair IN RE: Senate Bill No. 402
Committee on Criminal Justice By: Whitmire
Senate
Austin, Texas
FROM: John Keel, Director
In response to your request for a Fiscal Note on Senate Bill No.
402 (relating to the application of the sales and use tax to
certain products sold to inmates) this office has determined the
following:
The bill would eliminate the sales tax exemption for food
products, meals, soft drinks, and candy sold to persons confined
to correctional facilities. The bill would implement Gaining
Ground recommendation PSC 4.
Current law has been interpreted by the Attorney General and the
Comptroller to exempt these items when sold in correctional
facilities. The bill would eliminate the exemptions for items
sold to inmates of public and privately-operated prisons and
other correctional institutions, including county jails. The
bill would have no effect on patients of state licensed or
operated hospitals.
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 Gain to Local
to General Revenue Governments
Fund 001
1996 $688,000 $166,000
1997 833,000 201,000
1998 930,000 225,000
1999 962,000 233,000
2000 995,000 241,000
Similar annual fiscal implications would continue as long as the
provisions of the bill are in effect.
Source: Comptroller of Public Accounts, Department of Criminal
Justice
LBB Staff: JK, SM, RR