LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 77th Regular Session May 23, 2001 TO: Honorable James E. "Pete" Laney, Speaker of the House, House of Representatives FROM: John Keel, Director, Legislative Budget Board IN RE: HB1285 by Brimer (Relating to providing information to a municipality on sales and use taxes paid to the municipality.), As Passed 2nd House ************************************************************************** * No significant fiscal implication to the State is anticipated. * ************************************************************************** The bill would amend Chapter 321 of the Tax Code to require the Comptroller, on request, to provide certain municipalities, levying a tax under the chapter, information relating to the amount of municipal sales and use tax paid to the municipality during the preceding or current calendar year by each person doing business in the municipality who annually remits to the Comptroller state and local sales tax payments of more than $100,000. The Comptroller, on request, would have to provide a municipality information relating to the amount of municipal sales and use tax paid to the municipality during the preceding or current calendar year by each person doing business in an area that is part of an interlocal agreement; a tax abatement agreement; a reinvestment zone; a tax increment financing district; a revenue sharing agreement; an enterprise zone; a neighborhood empowerment zone; or any other similar agreement, zone, or district. The information shall be provided as an aggregate total without disclosing individual tax payments. The bill would take effect immediately upon enactment, assuming that it received the requisite two-thirds majority votes in both houses of the Legislature. Otherwise, it would take effect September 1, 2001. Methodology Under current law, the Comptroller is allowed to collect a reasonable fee to cover the expense of compiling and providing requested information. The bill would significantly enlarge the amount of data items that could be requested by a municipality. It is assumed that the collection of this fee would have no significant impact on the state or units of local government. Local Government Impact No significant fiscal implication to units of local government is anticipated. Source Agencies: 304 Comptroller of Public Accounts LBB Staff: JK, DB, SD, SM