LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 77th Regular Session
March 15, 2001
TO: Honorable Rene Oliveira, Chair, House Committee on Ways &
Means
FROM: John Keel, Director, Legislative Budget Board
IN RE: HB272 by Berman (Relating to exempting certain health
care items from state sales tax.), As Introduced
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* Estimated Two-year Net Impact to General Revenue Related Funds for *
* HB272, As Introduced: a negative impact of $(1,495,000) through *
* the biennium ending August 31, 2003, if the effective date of the *
* bill is July 1, 2001; and a negative impact of $(1,324,000) *
* through the biennium ending August 31, 2003, if the effective date *
* of the bill is October 1, 2001. *
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The following table assumes an effective date of July 1, 2001.
All Funds, Five-Year Impact:
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*Fiscal Probable Probable Probable Probable *
* Year Revenue Revenue Revenue Revenue *
* Gain/(Loss) to Gain/(Loss) to Gain/(Loss) to Gain/(Loss) to *
* General Revenue Cities Transit Counties/SPDs *
* Fund Authorities *
* 0001 *
* 2001 $(55,000) $0 $0 $0 *
* 2002 (698,000) (126,000) (49,000) (15,000) *
* 2003 (742,000) (134,000) (52,000) (16,000) *
* 2004 (794,000) (143,000) (55,000) (17,000) *
* 2005 (849,000) (153,000) (59,000) (18,000) *
* 2006 (912,000) (165,000) (64,000) (19,000) *
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The following table assumes an effective date of October 1, 2001.
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*Fiscal Probable Probable Probable Probable *
* Year Revenue Revenue Revenue Revenue *
* Gain/(Loss) to Gain/(Loss) to Gain/(Loss) to Gain/(Loss) to *
* General Revenue Cities Transit Counties/SPDs *
* Fund Authorities *
* 0001 *
* 2002 $(582,000) $(95,000) $(36,000) $(11,000) *
* 2003 (742,000) (134,000) (52,000) (16,000) *
* 2004 (794,000) (143,000) (55,000) (17,000) *
* 2005 (849,000) (153,000) (59,000) (18,000) *
* 2006 (912,000) (165,000) (64,000) (19,000) *
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Fiscal Analysis
The bill would amend Chapter 151 of the Tax Code to exempt certain
therapeutic goods from the sales tax.
The bill would exempt a therapeutic appliance or device, and any related
supplies specifically designed for those products, without regard to
whether those items were dispensed or prescribed by a licensed
practitioner of the healing arts, when those items were used in surgical
procedures to perform intraoperative, autologous blood transfusions.
The bill would take effect on the first day of the first calendar quarter
beginning on or after the date provided for under Section 39, Article
III of the Texas Constitution.
Methodology
Data on the sale of equipment used in surgical procedures to perform
blood transfusions were obtained from the U. S. Census Bureau. Sales
were adjusted to reflect taxable transactions made in Texas, multiplied
by the state sales tax rate, adjusted for the potential effective dates
of July 1, 2001 or October 1, 2001, and extrapolated through 2006. The
fiscal impacts on units of local government were estimated
proportionally.
Local Government Impact
Local units of government would have a corresponding fiscal impact from
sales tax revenues, as indicated in the tables above.
Source Agencies: 304 Comptroller of Public Accounts
LBB Staff: JK, SD, SM