LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 76th Regular Session
May 14, 1999
TO: Honorable Bill Ratliff, Chair, Senate Committee on Finance
FROM: John Keel, Director, Legislative Budget Board
IN RE: HB3623 by Hilbert (relating to the application of the
sales tax to land surveying services), As Engrossed
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* Estimated Two-year Net Impact to General Revenue Related Fundsfor *
* HB3623, As Engrossed: negative impact of $(500,000) through the *
* biennium ending August 31, 2001. *
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General Revenue-Related Funds, Five-Year Impact:
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* Fiscal Year Probable Net Positive/(Negative) *
* Impact to General Revenue Related *
* Funds *
* 2000 $(227,000) *
* 2001 (273,000) *
* 2002 (23,000) *
* 2003 0 *
* 2004 0 *
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All Funds, Five-Year Impact:
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*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 $(227,000) $(36,000) $(14,000) $(4,000) *
* 2001 (273,000) (48,000) (19,000) (6,000) *
* 2002 (23,000) (8,000) (3,000) (1,000) *
* 2003 0 0 0 0 *
* 2004 0 0 0 0 *
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Fiscal Analysis
The bill would amend Chapter 151 of the Tax Code to exempt certain land
surveying services from the sales tax. Surveying services purchased by
an owner of real property, as part of the improvement to real property
with a new residential structure, would be exempt from taxation.
The bill would take effect October 1, 1999 and would expire August 31,
2001.
Methodology
The estimated purchases of survey services purchased by property owners
were multiplied by the state sales tax rate and projected out for fiscal
2000 and 2001, adjusting for an October 1, 1999 effective date. The
bill's provisions would expire August 31, 2001.
There would be a small loss to the state in fiscal 2002 because of a
one-month lag between the expiration of the exemption and the state's
receipt of tax revenue on purchases made before the expiration of the
exemption. The fiscal impact 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: 304 Comptroller of Public Accounts
LBB Staff: JK, BB, BR, SM