LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 76th Regular Session February 22, 1999 TO: Honorable Carlos Truan, Chair, Senate Committee on Veteran Affairs & Military Installations FROM: John Keel, Director, Legislative Budget Board IN RE: SB313 by Madla (Relating to the number of authorized defense projects within a defense readjustment zone.), As Introduced ************************************************************************** * Estimated two-year Net Impact to General Revenue Related Funds for * * SB313, As Introduced: negative impact of $(2,475,000) 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 $0 * * 2001 (2,475,000) * * 2002 (4,625,000) * * 2003 (7,500,000) * * 2004 (11,150,000) * **************************************************** All Funds, Five-Year Impact: ***************************************************** * Fiscal Year Probable Revenue Gain/(Loss) from * * General Revenue Fund * * 0001 * * 2000 $0 * * 2001 (2,475,000) * * 2002 (4,625,000) * * 2003 (7,500,000) * * 2004 (11,150,000) * ***************************************************** Fiscal Analysis The bill would increase the number of businesses in a defense readjustment zone eligible for designation as defense readjustment projects from two to six. Businesses designated as defense readjustment projects are eligible for the refund of state sales or use taxes as well as franchise tax reductions. Methodology The Comptroller of Public Accounts estimates there will be three businesses per zone in three defense readjustment zones in fiscal year 2000 and fiscal year 2001, four businesses per zone in four zones in fiscal year 2002, five businesses per zone in five zones in fiscal year 2003, and six businesses per zone in six zones in fiscal year 2004. Local Government Impact No fiscal implication to units of local government is anticipated. Source Agencies: LBB Staff: JK, TH, RT, HL