LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 77th Regular Session
February 1, 2001
TO: Honorable Rene Oliveira, Chair, House Committee on Ways &
Means
FROM: John Keel, Director, Legislative Budget Board
IN RE: HB294 by Thompson (Relating to exempting gun safes from
the sales tax.), As Introduced
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* Estimated Two-year Net Impact to General Revenue Related Funds for *
* HB294, As Introduced: a negative impact of $(626,000) through the *
* biennium ending August 31, 2003, if the effective date of the bill *
* is July 1, 2001; and a negative impact of $(552,000) 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 $(24,000) $0 $0 $0 *
* 2002 (297,000) (54,000) (21,000) (6,000) *
* 2003 (305,000) (55,000) (21,000) (7,000) *
* 2004 (313,000) (57,000) (22,000) (7,000) *
* 2005 (321,000) (58,000) (22,000) (7,000) *
* 2006 (330,000) (60,000) (23,000) (7,000) *
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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 $(247,000) $(40,000) $(15,000) $(5,000) *
* 2003 (305,000) (55,000) (21,000) (7,000) *
* 2004 (313,000) (57,000) (22,000) (7,000) *
* 2005 (321,000) (58,000) (22,000) (7,000) *
* 2006 (330,000) (60,000) (23,000) (7,000) *
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Fiscal Analysis
The bill would amend Chapter 151 of the Tax Code to exempt gun safes from
the sales and use tax.
Exempted would be enclosures specifically designed or modified for the
purpose of storing a firearm and equipped with a locking device, such as
a padlock or key lock.
The bill would take effect July 1, 2001 if it were to receive the
requisite two-thirds majority votes in both houses of the Legislature.
Otherwise, it would take effect October 1, 2001.
Methodology
The fiscal implications of exempting gun safes from the sales tax were
estimated using a variety of data, both public and private. Estimated
sales of gun safes in Texas were multiplied by the state sales tax rate,
adjusted for the effective date, and projected through fiscal 2006.
Fiscal implications to 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 table above.
Source Agencies: 304 Comptroller of Public Accounts
LBB Staff: JK, SD, SM