LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 76th Regular Session
March 8, 1999
TO: Honorable Rene Oliveira, Chair, House Committee on Ways &
Means
FROM: John Keel, Director, Legislative Budget Board
IN RE: HB551 by Goolsby (relating to exempting certain small
corporations from the franchise tax), As Introduced
**************************************************************************
* Estimated Two-year Net Impact to General Revenue Related Funds for *
* HB551, As Introduced: negative impact of $(57,167,000) through *
* the biennium ending August 31, 2001. *
**************************************************************************
General Revenue-Related Funds, Five-Year Impact:
****************************************************
* Fiscal Year Probable Net Positive/(Negative) *
* Impact to General Revenue Related *
* Funds *
* 2000 $(28,234,000) *
* 2001 (28,933,000) *
* 2002 (30,658,000) *
* 2003 (32,599,000) *
* 2004 (34,697,000) *
****************************************************
All Funds, Five-Year Impact:
*****************************************************
* Fiscal Year Probable Revenue Gain/(Loss) from *
* General Revenue Fund *
* 0001 *
* 2000 $(28,234,000) *
* 2001 (28,933,000) *
* 2002 (30,658,000) *
* 2003 (32,599,000) *
* 2004 (34,697,000) *
*****************************************************
Fiscal Analysis
Beginning January 1, 2000, the bill would exempt corporations with gross
receipts of $100,000 or less from the franchise tax. In cases where
the liability calculated based on net taxable capital was greater than
when calculated on net taxable earned surplus, taxes would continue to
be due.
Methodology
The Comptroller's Office provided a fiscal impact analysis based on data
contained in their corporate franchise tax file.
Local Government Impact
No fiscal implication to units of local government is anticipated.
Source Agencies:
LBB Staff: JK, BB, BR, CT