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