LEGISLATIVE BUDGET BOARD
                              Austin, Texas
                                     
                    FISCAL NOTE, 77th Regular Session
  
                              March 23, 2001
  
  
          TO:  Honorable Rene Oliveira, Chair, House Committee on Ways &
               Means
  
        FROM:  John Keel, Director, Legislative Budget Board
  
       IN RE:  HB1431  by Danburg (Relating to the voluntary collection
               of certain taxes.), As Introduced
  
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*  No significant fiscal implication to the State is anticipated.        *
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The bill would amend Chapter 111 of the Tax Code to allow the Comptroller
to enter into an agreement with a nonresident, who is not required under
federal law to collect and remit to the Comptroller a use or other tax
on the sale of tangible personal property, for the voluntary collection
of state and local taxes imposed on the sale of tangible personal
property stored, used, or consumed in this state.  The person would
register with the Comptroller and would not be held to any requirement
beyond those imposed under Chapter 151 of the code. 

The bill would take effect September 1, 2001.

Methodology

A nonresident who does not have a physical presence in Texas and who
sells tangible personal property for storage, use, or consumption in this
state is not required under federal law to collect the use tax from the
purchaser.  The purchaser has the responsibility for remitting taxes due.
The bill would allow the Comptroller to enter into agreements with
nonresidents for the voluntary collection of any state and local sales or
use taxes.  Persons transacting business under an agreement to pay,
collect, and remit taxes would not be liable under civil or criminal law
for receiving, selling, or delivering the property in Texas if certain
conditions of the bill were met.

The number of agreements that would be created and the amount of taxable
sales by nonresidents entering into these agreements is not known, but
the creation of these agreements could result in increased tax revenue
to the state.  Given the magnitude of current sales tax revenue, it is
not anticipated that the provisions of the bill would result in a
significant impact on state sales tax revenue.
  
Local Government Impact
  
No significant fiscal implication to units of local government is
anticipated.
  
  
Source Agencies:   304   Comptroller of Public Accounts
LBB Staff:         JK, SD, SM