LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 76th Regular Session April 7, 1999 TO: Honorable Rene Oliveira, Chair, House Committee on Ways & Means FROM: John Keel, Director, Legislative Budget Board IN RE: HB2371 by Gutierrez (relating to exempting diapers from the sales tax), As Introduced ************************************************************************** * Estimated Two-Year Net Impact to General Revenue Related Funds for * * HB2371, As Introduced: negative impact of $(56,438,000) 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 $(25,395,000) * * 2001 (31,043,000) * * 2002 (31,639,000) * * 2003 (32,219,000) * * 2004 (32,789,000) * **************************************************** All Funds, Five-Year Impact: *************************************************************************** *Fiscal Probable Probable Probable Probable * * Year Revenue Revenue Revenue Revenue * * Gain/(Loss) to Gain/(Loss) to Gain/(Loss) to Gain/(Loss) to * * General Revenue Cities Transit Counties/SPDs * * Fund Authorities * * 0001 * * 2000 $(25,395,000) $(3,987,000) $(1,565,000) $(483,000) * * 2001 (31,043,000) (5,415,000) (2,126,000) (656,000) * * 2002 (31,639,000) (5,519,000) (2,167,000) (668,000) * * 2003 (32,219,000) (5,620,000) (2,207,000) (680,000) * * 2004 (32,789,000) (5,719,000) (2,246,000) (693,000) * *************************************************************************** Fiscal Analysis The bill would amend Chapter 151 of the Tax Code to exempt diapers from the sales tax. Methodology Data on the sale of diapers were gathered from public and private sources, including the U.S. Census Bureau and Comptroller tax files. Resulting data were multiplied by the state sales tax rate, extrapolated through fiscal 2004, and adjusted for an effective date of October 1, 1999. The fiscal impacts on units of local government were estimated proportionally. Local Government Impact Local units of government would have a corresponding fiscal impact from sales tax revenues, as indicated in the table above. Source Agencies: LBB Staff: JK, BB, BR, SM