LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 76th Regular Session May 21, 1999 TO: Honorable Rene Oliveira, Chair, House Committee on Ways & Means FROM: John Keel, Director, Legislative Budget Board IN RE: SB329 by Haywood (relating to the date on which certain tax payments are due), As Engrossed ************************************************************************** * Estimated Two-year Net Impact to General Revenue Related Fundsfor * * SB329, As Engrossed: impact of $0 through the biennium ending * * August 31, 2001. * ************************************************************************** General Revenue-Related Funds, Seven-Year Impact: **************************************************** * Fiscal Year Probable Net Positive/(Negative) * * Impact to General Revenue Related * * Funds * * 2000 $0 * * 2001 0 * * 2002 0 * * 2003 (41,516,000) * * 2004 41,516,000 * * 2005 (42,148,000) * * 2006 42,148,000 * **************************************************** All Funds, Seven-Year Impact: *************************************************************************** *Fiscal Probable Revenue Gain/(Loss) Probable Revenue Gain/(Loss) * * Year from Foundation School Fund from General Revenue Fund * * 0193 0001 * * 2000 $0 $0 * * 2001 0 0 * * 2002 0 0 * * 2003 (10,379,000) (31,137,000) * * 2004 10,379,000 31,137,000 * * 2005 (10,649,000) (31,499,000) * * 2006 10,649,000 31,499,000 * *************************************************************************** Fiscal Analysis The bill would eliminate certain "speed-up" provisions relating to the payment of the gasoline tax, the diesel fuel tax, the oil production tax, and the natural gas tax. Under current law, in August of each odd-numbered year, gasoline, diesel fuel, and oil production taxpayers must remit an estimated monthly payment (basically equal to the amount of tax due the previous month) on the 15th. In all other months, true monthly payments are due on the 25th. The bill would repeal the three sections that impose the payment speed-ups. The bill also would repeal provisions that require, in August of each odd-numbered year, natural gas taxpayers to remit an estimated July production payment in August. As such, the payment based on true July production would become due in September, consistent with the two-month delay that applies to all other months. The bill would take effect September 1, 2001. Methodology The change in due dates for the oil production, gasoline, and diesel fuel taxes would have an insignificant fiscal impact given the preponderant use of electronic return filing and electronic funds transfers. The change in the due date for the natural gas tax would eliminate the current cycle of odd-numbered years having 13 months of revenue collections and even-numbered years having 11 months of revenue collections. With a September 2001 effective date, odd-year prepayments would still occur in fiscal 1999 and fiscal 2001. Local Government Impact No fiscal implication to units of local government is anticipated. Source Agencies: 304 Comptroller of Public Accounts LBB Staff: JK, BB, DE, CT