LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 76th Regular Session
May 11, 1999
TO: Honorable Bill Ratliff, Chair, Senate Committee on Finance
FROM: John Keel, Director, Legislative Budget Board
IN RE: HB551 by Goolsby (relating to exempting certain small
corporations from the franchise tax and to the reporting
requirements for those corporations), As Engrossed
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* Estimated Two-year Net Impact to General Revenue Related Fundsfor *
* HB551, As Engrossed: negative impact of $(120,652,000) through *
* the biennium ending August 31, 2001. *
* *
* The bill would make no appropriation but could provide the legal *
* basis for an appropriation of funds to implement the provisions of *
* the bill. *
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General Revenue-Related Funds, Five-Year Impact:
****************************************************
* Fiscal Year Probable Net Positive/(Negative) *
* Impact to General Revenue Related *
* Funds *
* 2000 $(59,588,000) *
* 2001 (61,064,000) *
* 2002 (64,705,000) *
* 2003 (68,802,000) *
* 2004 (73,229,000) *
****************************************************
All Funds, Five-Year Impact:
*****************************************************
* Fiscal Year Probable Revenue Gain/(Loss) from *
* General Revenue Fund *
* 0001 *
* 2000 $(59,588,000) *
* 2001 (61,064,000) *
* 2002 (64,705,000) *
* 2003 (68,802,000) *
* 2004 (73,229,000) *
*****************************************************
Fiscal Analysis
The bill would exempt from the franchise tax any corporation with annual
gross receipts of $250,000 or less. The new exemption would become
effective for all franchise tax reports originally due after January 1,
2000 and before January 1, 2006.
Before the beginning of the 79th Legislative Session, the Comptroller
would be required to report to the Legislature and Governor regarding
the exemption's impact on the state economy and on the administration of
tax law, including a recommendation for retaining, eliminating, or
amending the exemption.
Methodology
This note is based on an analysis prepared by the Comptroller's Office
from data derived from Comptroller franchise tax files.
Local Government Impact
No significant fiscal implication to units of local government is
anticipated.
Source Agencies: 304 Comptroller of Public Accounts
LBB Staff: JK, BB, BR, CT