LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE
75th Regular Session
April 10, 1997
TO: Honorable Pete Patterson, Chair IN RE: House Bill No. 2011, Committee Report 1st House, Substituted
Committee on Agriculture & Livestock By: Patterson, L.P. "Pete"
House
Austin, Texas
FROM: John Keel, Director
In response to your request for a Fiscal Note on HB2011 ( Relating
to the promotion of Texas agricultural products and the sale
of wine; creating a vintner's permit; imposing a tax on the
sale of wine; providing penalties.) this office has detemined
the following:
Biennial Net Impact to General Revenue Funds by HB2011-Committee Report 1st House, Substituted
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.
The bill would make no appropriation but could provide the legal
basis for an appropriation of funds to implement the provisions
of the bill.
Fiscal Analysis
The bill would make several changes in the Alcoholic Beverage
Code relating to the promotion, sale, and taxation of wine,
by establishing a new $300 Farm Winery permit and creating a
wholesale tax of five cents per gallon of wine sold for resale.
The tax would be paid monthly to the Texas Alcoholic Beverage
Commission by permit holders authorized to sell wine for resale.
Revenue collected from the retail wine tax could be appropriated
only to the Texas Department of Agriculture for the promotion
of research and marketing of wine in Texas.
This bill would
take effect September 1, 1997.
Methodolgy
The revenue from the wholesale wine tax was estimated by transforming
projected wine excise tax revenue into an equivalent number
of gallons, which was then multiplied by the 5 cents per gallon
wholesale wine tax rate. This figure was adjusted for breakage,
reporting and collection lags, and possible tax evasion effects.
Revenue from the retail wine tax would be dedicated to the
Texas Department of Agriculture's wine programs.
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
Gain/(Loss) from Savings/(Cost)
New - GR Dedicated from New - GR
Dedicated
NEW-DED NEW-DED
1998 $851,000 ($851,000)
1998 1,123,000 (1,123,000)
2000 1,137,000 (1,137,000)
2001 1,146,000 (1,146,000)
2002 1,157,000 (1,570,000)
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
1998 $0
1999 0
2000 0
2001 0
2002 0
Source: Agencies: 304 Comptroller of Public Accounts
551 Department of Agriculture
458 Alcoholic Beverage Commission
LBB Staff: JK ,BB ,RT