LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 77th Regular Session March 19, 2001 TO: Honorable Rene Oliveira, Chair, House Committee on Ways & Means FROM: John Keel, Director, Legislative Budget Board IN RE: HB1845 by Oliveira (Relating to simplified sales and use tax administration.), As Introduced ************************************************************************** * No fiscal implication to the State is anticipated. * ************************************************************************** The bill would make the statutory modifications necessary for Texas to join the Streamlined Sales and Use Tax Agreement and fully participate in multi-state discussions and negotiations regarding the simplification and modernization of sales tax administration. The bill, however, would not affect the current administration of the state's sales and use tax and would therefore have no fiscal impact on the state or on units of local government. The bill would amend Title 2 of the Tax Code to establish the Simplified Sales and Use Tax Administration Act. The Streamlined Sales and Use Tax Agreement would be a multi-state effort to simplify and modernize sales and use tax administration within the member states to reduce the burden of tax compliance. The bill would authorize the Comptroller to take actions reasonably required to implement and further the agreement. The Comptroller would not be able to enter into the Streamlined Sales and Use Tax Agreement unless the agreement required each state to comply with specific provisions in the agreement. These provisions would include: limiting over time the number of state sales and use tax rates; establishing uniform standards for the administration of sales and use taxes among member states; providing a central electronic registration system that would allow sellers to register to collect and remit sales and use taxes for member states; and reducing the burden of compliance with local sales and use taxes. The bill would hold that a law of this state could not be declared invalid on the ground that it conflicts with the provisions of the proposed agreement and that a state law could not be amended or modified by the adoption of the agreement. 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. Local Government Impact No fiscal implication to units of local government is anticipated. Source Agencies: 304 Comptroller of Public Accounts LBB Staff: JK, SD, WP, SM