LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE
74th Regular Session
April 23, 1995
TO: Honorable John T. Montford, Chair IN RE: Senate Bill No. 767
Committee on Finance By: Montford
Senate
Austin, Texas
FROM: John Keel, Director
In response to your request for a Fiscal Note on Senate Bill No.
767 (Relating to the allocation of certain sales and tax revenue
to the Texas cultural endowment fund.) this office has determined
the following:
The bill would require the deposit of a portion of the state
sales tax to the Texas Cultural Endowment Fund outside the state
treasury. The amount diverted from the treasury to the Texas
Cultural Endowment Fund would be equal to state sales tax
collections on cultural services and related tangible personal
property at a 1 percent tax rate.
"Cultural services and related tangible personal property" is
defined as amusement services currently taxable under the state
sales tax and attributable to motion picture theaters; amusement
and recreation services; and art galleries, museums, and
botanical and zoological gardens. The term includes tangible
personal property sold by these establishments as part of, or in
relation to, their amusement services.
The diversion of state sales tax would continue until the fund
balance reached $200,000,000 or September 1, 2005, whichever
occurred first.
The bill would take effect on September 1, 1995.
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 Loss from General Gain to the Texas
Revenue Fund 001 Cultural Endowment
Fund - Outside the
Treasury
1996 $20,181,000 $20,181,000
1997 23,416,000 23,416,000
1998 24,933,000 24,933,000
1999 26,605,000 26,605,000
2000 28,510,000 28,510,000
No fiscal implication to units of local government is
anticipated.
Source: Comptroller of Public Accounts
LBB Staff: JK, RS, DF