LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE
75th Regular Session
February 25, 1997
TO: Honorable Rene Oliveira, Chair IN RE: House Bill No. 1310
Committee on Economic Development By: Chisum
House
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 Introduced
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:
The probable fiscal implication to General Revenue related funds
during each of the first five years is estimated as follows:
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 ,TH ,RS