LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 76th Regular Session May 4, 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), Committee Report 1st House, as amended ************************************************************************** * Estimated Two-year Net Impact to General Revenue Related Funds for * * SB313, Committee Report 1st House, as amended: impact of $0 * * 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 Net Impact: **************************************************** * Fiscal Year Probable Net Positive/(Negative) * * Impact to General Revenue Related * * Funds * * 2000 $0 * * 2001 0 * * 2002 0 * * 2003 (1,225,000) * * 2004 (1,600,000) * **************************************************** All Funds, Five-Year Impact: ***************************************************** * Fiscal Year Probable Revenue Gain/(Loss) from * * General Revenue Fund * * 0001 * * 2000 $0 * * 2001 0 * * 2002 0 * * 2003 (1,225,000) * * 2004 (1,600,000) * ***************************************************** Fiscal Analysis The bill would increase the maximum 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. The effective date would be September 1, 2001. Methodology The Comptroller of Public Accounts estimates there will be refunds to three additional businesses in fiscal year 2002, four businesses in fiscal year 2003, and five additional businesses in fiscal year 2004. It is assumed refunds would be paid to eligible firms beginning in 2003. Local Government Impact No fiscal implication to units of local government is anticipated. Source Agencies: 480 Department of Economic Development, 304 Comptroller of Public Accounts LBB Staff: JK, TH, RT, DP