LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE 74th Regular Session March 1, 1995 TO: Honorable John T. Montford, Chair IN RE: Senate Bill No. 403 Committee on Finance By: Cain Senate Austin, Texas FROM: John Keel, Director In response to your request for a Fiscal Note on Senate Bill No. 403 (Relating to the attorney tax and to state bar membership fees.) this office has determined the following: This bill would restructure the attorney tax as a fee to be submitted with the attorney's license renewal and collected by the State Bar. The bill would repeal Subchapter H, Chapter 191 of the Tax Code, which imposes an annual occupation tax of $200 on each attorney. The bill would increase state bar membership fees by $200. Of this amount, $50 would be deposited into the Foundation School Fund and $150 would be deposited into the General Revenue Fund. Payment of the fee increase would be required as a condition of continued membership in the State Bar. The State Bar would be required to automatically suspend the license of an attorney who failed to pay the fee increase within 90 days following the due date. The fee increase would not apply to attorneys who are exempt from the attorney tax in accordance with Comptroller practice. The bill would implement Gaining Ground recommendation GG 6 by restructuring the attorney tax as a fee to be collected by the State Bar and requiring payment of the $200 fee increase as a condition of continued membership in the State Bar. The bill would produce a gain to the General Revenue Fund and the Foundation School Fund by increasing voluntary compliance with the 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 General Revenue Foundation School Fund 001 Fund 193 1996 $645,000 $215,000 1997 645,000 215,000 1998 645,000 215,000 1999 645,000 215,000 2000 645,000 215,000 Similar annual fiscal implications would continue as long as the provisions of the bill are in effect. Source: Comptroller of Public Accounts LBB Staff: JK, SM, DF