LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 76th Regular Session Revision 1 April 28, 1999 TO: Honorable Rene Oliveira, Chair, House Committee on Ways & Means FROM: John Keel, Director, Legislative Budget Board IN RE: HB2543 by McCall (relating to settlement of a claim for a tax penalty or interest on a tax), Committee Report 1st House, Substituted ************************************************************************** * Estimated Two-year Net Impact to General Revenue Related Fundsfor * * HB2543, Committee Report 1st House, as amended: negative impact * * of $(36,354,000) 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 $(17,650,000) * * 2001 (18,704,000) * * 2002 (19,773,000) * * 2003 (20,794,000) * * 2004 (21,676,000) * **************************************************** All Funds, Five-Year Impact: ***************************************************** * Fiscal Year Probable Revenue Gain/(Loss) from * * General Revenue Fund * * 0001 * * 2000 $(17,650,000) * * 2001 (18,704,000) * * 2002 (19,773,000) * * 2003 (20,794,000) * * 2004 (21,676,000) * ***************************************************** Fiscal Analysis The bill would change the definition of "reasonable diligence" for tax compliance purposes. Methodology The Comptroller estimates that the change would result in decreased compliance with laws relating to remittance of state taxes, creating a loss of penalty and interest. Local Government Impact The Comptroller's estimate showed no loss to units of local government. Source Agencies: 304 Comptroller of Public Accounts LBB Staff: JK, BB, RS