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
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* 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. *
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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