LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 76th Regular Session
February 19, 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), Committee Report
1st House, Substituted
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* Two-year Net Impact to General Revenue Related Funds for SB148, *
* Committee Report 1st House, Substituted: negative impact of *
* $(57,167,000) 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. *
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General Revenue-Related Funds, Five-Year Impact:
****************************************************
* Fiscal Year Probable Net Positive/(Negative) *
* Impact to General Revenue Related *
* Funds *
* 2000 $(28,234,000) *
* 2001 (28,933,000) *
* 2002 (30,658,000) *
* 2003 (32,599,000) *
* 2004 (34,697,000) *
****************************************************
All Funds, Five-Year Impact:
*****************************************************
* Fiscal Year Probable Revenue Gain/(Loss) from *
* General Revenue Fund *
* 0001 *
* 2000 $(28,234,000) *
* 2001 (28,933,000) *
* 2002 (30,658,000) *
* 2003 (32,599,000) *
* 2004 (34,697,000) *
*****************************************************
Fiscal Analysis
The bill would exempt from franchise tax liability and franchise tax
reporting requirements any corporation with $100,000 or less in annual
gross receipts.
Methodology
The proposed change in law was modeled on a firm-by-firm basis by the
Comptroller's Office.
Local Government Impact
No fiscal implication to units of local government is anticipated.
Source Agencies:
LBB Staff: JK, BB, BR, CT