LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE 75th Regular Session May 12, 1997 TO: Honorable Eddie Lucio, Jr., Chair IN RE: House Bill No. 1310, As Engrossed Committee on Intergovernmental Relations By: Chisum Senate Austin, Texas FROM: John Keel, Director In response to your request for a Fiscal Note on HB1310 ( Relating to the extension or reimposition of the sales and use tax by certain industrial development corporations.) this office has detemined the following: Biennial Net Impact to General Revenue Funds by HB1310-As Engrossed Implementing the provisions of the bill would result in a net impact of $0 to General Revenue Related Funds through the biennium ending August 31, 1999 Fiscal Analysis The bill would allow a city imposing a sales tax under Section 4A(n) of the Development Corporation Act of 1979 to extend the tax beyond its original expiration date if authorized by a majority of the voters voting in an election held for that purpose. Methodolgy The only city currently imposing a tax under this section is Pampa. The sales tax collections for Pampa were used as a basis for the estimate. According to imformation provided by the Comptroller of Public Accounts, the economic development tax in Pampa tax would expire in 2002 under current law. The probable fiscal implications of implementing the provisions of the bill during each of the first five years following passage is estimated as follows: Five Year Impact: Fiscal Year Probable Revenue Probable Revenue Gain/(Loss) from Gain/(Loss) from General Revenue Cities Fund 0001 LCL-CITY 2003 $14,000 $700,000 2003 14,000 700,000 2005 14,000 700,000 2006 14,000 700,000 2007 14,000 700,000 Net Impact on General Revenue Related Funds: Fiscal Year Probable Net Postive/(Negative) General Revenue Related Funds Funds 2003 $14,000 2004 14,000 2005 14,000 2006 14,000 2007 14,000 Similar annual fiscal implications would continue as long as the provisions of the bill are in effect. Source: Agencies: 304 Comptroller of Public Accounts LBB Staff: JK ,TL ,TH ,RS