LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 76th Regular Session February 11, 1999 TO: Honorable Bill Ratliff, Chair, Senate Committee on Finance FROM: John Keel, Director, Legislative Budget Board IN RE: SB148 by Fraser (Relating to exempting certain small corporations from the franchise tax), As Introduced ************************************************************************** * Two-year Net Impact to General Revenue Related Funds for SB148, As * * Introduced: negative impact of $(112,157,000) through the * * biennium ending August 31, 2001. * * * * The bill would make no appropriation but could provide the legal * * basis for an appropriation of funds to implement the provisions of * * the bill. * ************************************************************************** General Revenue-Related Funds, Five-Year Impact: **************************************************** * Fiscal Year Probable Net Positive/(Negative) * * Impact to General Revenue Related * * Funds * * 2000 $(54,158,000) * * 2001 (57,999,000) * * 2002 (61,457,000) * * 2003 (65,348,000) * * 2004 (69,553,000) * **************************************************** All Funds, Five-Year Impact: ***************************************************** * Fiscal Year Probable Revenue Gain/(Loss) from * * General Revenue Fund * * 0001 * * 2000 $(54,158,000) * * 2001 (57,999,000) * * 2002 (61,457,000) * * 2003 (65,348,000) * * 2004 (69,553,000) * ***************************************************** Technology Impact None. Fiscal Analysis The bill would exempt corporations with gross receipts of $200,000 or less from the franchise tax and from tax report filing. January 1, 2000 would be the effective date for the legislation. Methodology The Comptroller's Office provided an estimate of fiscal implications based an analysis of current franchise taxpayer data. Local Government Impact No fiscal implication to units of local government is anticipated. Source Agencies: 304 Comptroller Of Pub Accts LBB Staff: JK, BB, BR, CT