LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE 75th Regular Session April 6, 1997 TO: Honorable Bill Ratliff, Chair IN RE: Senate Bill No. 1778 Committee on Finance By: Shapleigh Senate Austin, Texas FROM: John Keel, Director In response to your request for a Fiscal Note on SB1778 ( Relating to reports on and analyses of tax impacts.) this office has detemined the following: Biennial Net Impact to General Revenue Funds by SB1778-As Introduced Implementing the provisions of the bill would result in a net negative impact of $(739,000) 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 amend Chapter 403 of the Government Code. The Office of Comptroller of Public Accounts would be required to prepare a report for the Legislature and the Governor prior to each regular legislative session on the overall incidence of each state tax. In addition, the Legislative Budget Board, with the assistance as requested of the Comptroller's Office, would be required to prepare an incidence impact analysis for bills or resolutions that would increase, decrease, or redistribute taxes by more than $20 million, upon request from a Senate or House of Representatives committee chair. The bill would take effect September 1, 1997. Methodolgy The Comptroller's office estimated that the bill would have no effect on state or local government revenue. It would, however, require additional Comptroller's Office staff, computer equipment and software, and the use of outside consultants to develop the databases, assist with computer programming, and assist in preparing the biennial tax incidence report. The Legislative Budget Board office would have similar requirements. 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 Probable Change in Number Savings/(Cost) Savings/(Cost) of State from General from General Employees from Revenue Fund - Revenue Fund - FY 1997 Comptroller Legislative Administrative Budget Board Costs Administrative Costs 0001 0001 1998 ($219,000) ($200,000) 4.0 1998 (220,000) (100,000) 5.0 2000 (220,000) (100,000) 5.0 2001 (220,000) (100,000) 5.0 2002 (220,000) (100,000) 5.0 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 ($419,000) 1999 (320,000) 2000 (320,000) 2001 (320,000) 2002 (320,000) Similar annual fiscal implications would continue as long as the provisions of the bill are in effect. No fiscal implication to units of local government is anticipated. Source: Agencies: 304 Comptroller of Public Accounts LBB Staff: JK ,RR ,BR