LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 76th Regular Session May 13, 1999 TO: Honorable Frank Madla, Chair, Senate Committee on Intergovernmental Relations FROM: John Keel, Director, Legislative Budget Board IN RE: HB 2858 by Siebert (Relating to the authority of certain taxing entities to repeal the local sales and use tax exemption for telecommunications services.), As Engrossed ************************************************************************** * * * No fiscal implication to the State is anticipated. * ************************************************************************** The bill would prohibit the governing board of a Metropolitan Rapid Transit Authority (MTA) from repealing the local sales and use tax exemption for telecommunications services, unless the repeal was first approved by a majority of the members of the city council of each municipality that created the MTA. The bill would require similar approval to reinstate the exemption. Local Government Impact No significant fiscal implication to units of local government is anticipated. The bill would require an MTA board to first receive approval from a majority of the city council members of each municipality that created the MTA to repeal or reinstate the local sales tax exemption for telecommunications services. Source Agencies: 304 Comptroller of Public Accounts LBB Staff: JK, TL, BB, SM