LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 77th Regular Session February 5, 2001 TO: Honorable Rene Oliveira, Chair, House Committee on Ways & Means FROM: John Keel, Director, Legislative Budget Board IN RE: HB646 by Jones, Delwin (Relating to an exemption from sales and use tax for certain bingo equipment.), As Introduced ************************************************************************** * Estimated Two-year Net Impact to General Revenue Related Funds for * * HB646, As Introduced: negative impact of $(279,000) through the * * biennium ending August 31, 2003. * ************************************************************************** General Revenue-Related Funds, Five-Year Impact: **************************************************** * Fiscal Year Probable Net Positive/(Negative) * * Impact to General Revenue Related * * Funds * * 2002 $(124,000) * * 2003 (155,000) * * 2004 (161,000) * * 2005 (167,000) * * 2006 (174,000) * **************************************************** All Funds, Five-Year Impact: *************************************************************************** *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 $(124,000) $(18,000) $(7,000) $(2,000) * * 2003 (155,000) (25,000) (10,000) (3,000) * * 2004 (161,000) (26,000) (10,000) (3,000) * * 2005 (167,000) (27,000) (10,000) (3,000) * * 2006 (174,000) (28,000) (11,000) (3,000) * *************************************************************************** Fiscal Analysis The bill would amend Chapter 151 of the Tax Code to exempt certain bingo equipment, devices, and supplies from the sales and use tax. The exemption would extend to organizations licensed to conduct bingo, if the equipment were purchased and used exclusively to conduct bingo as authorized under Chapter 2001 of the Occupations Code. The bill would take effect October 1, 2001. Methodology The bill would exempt bingo equipment purchased and used by those conducting bingo games. Qualifying organizations would include fraternal, nonprofit, veteran's, and religious organizations licensed to conduct bingo games in Texas, as well as other authorized organizations licensed to conduct such games. The estimated annual sales in Texas of items proposed for exemption was multiplied by the state sales tax rate, extrapolated through 2006, and adjusted for an effective date of October 1, 2001. 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 table above. Source Agencies: 304 Comptroller of Public Accounts LBB Staff: JK, SD, SM