LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE
75th Regular Session
February 12, 1997
TO: Honorable Kenneth Armbrister, Chair IN RE: Senate Bill No. 461
Committee on State Affairs By: Moncrief
Senate
Austin, Texas
FROM: John Keel, Director
In response to your request for a Fiscal Note on SB461 ( Relating
to the authority of the comptroller to contract for certain
tax collection services.) this office has detemined the following:
Biennial Net Impact to General Revenue Funds by SB461-As Introduced
Implementing the provisions of the bill would result in a net
positive impact of $40,127,000 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 authorize the Comptroller to contract with an
appropriate vendor to develop and implement an advanced database
system to enhance tax collections. The contract would provide
that the vendor developing and implementing the system receive
compensation through a contingency fee determined from a percentage
of the revenue, not to exceed a stated amount, deposited into
the State Treasury from audit and enforcement actions taken
by the Comptroller as a result of cases identified by the vendor's
system.
The bill would authorize the Comptroller to contract
with an appropriate person to perform tax audits in states that
are not covered by Comptroller field offices. The contract
would provide that the person performing the audits receive
compensation through a contingency fee determined from a percentage
of the revenue, not to exceed a stated amount, deposited into
the State Treasury as a result of the audits.
Methodolgy
The state would receive additional revenue from audit payments,
collections through enforcement actions, and enhanced voluntary
compliance.
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 Change in Number
Gain/(Loss) from of State
General Revenue Employees from
Fund FY 1997
0001
1998 $3,210,000 0.0
1998 36,917,000 0.0
2000 47,328,000 0.0
2001 59,567,000 0.0
2002 74,665,000 0.0
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 $3,210,000
1999 36,917,000
2000 47,328,000
2001 59,567,000
2002 74,665,000
Similar annual fiscal implications would continue as long as
the provisions of the bill are in effect.
If a taxpayer, delinquent in state taxes, was also delinquent
in local taxes, the comptroller would attempt to collect the
delinquent local taxes on behalf of the appropriate locality
or localities. The comptroller would not attempt to collect
delinquent local taxes from a taxpayer who was not also delinquent
in state taxes. Consequently, the potential exists for units
of local government to receive a revenue gain due to increased
collection of delinquent local taxes.
Source: Agencies: 304 Comptroller of Public Accounts
LBB Staff: JK ,JD ,RN