LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 77th Regular Session March 22, 2001 TO: Honorable Rene Oliveira, Chair, House Committee on Ways & Means FROM: John Keel, Director, Legislative Budget Board IN RE: HB2274 by Hilbert (Relating to the application of the sales tax and licensing fees to professional land surveyors.), As Introduced ************************************************************************** * Estimated Two-year Net Impact to General Revenue Related Funds for * * HB2274, As Introduced: negative impact of $(18,841,000) 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 $(8,248,000) * * 2003 (10,593,000) * * 2004 (11,368,000) * * 2005 (12,201,000) * * 2006 (13,142,000) * **************************************************** 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 $(8,361,000) $(827,000) $(545,000) $(167,000) * * 2003 (10,716,000) (2,002,000) (772,000) (237,000) * * 2004 (11,491,000) (2,142,000) (826,000) (253,000) * * 2005 (12,324,000) (2,292,000) (884,000) (271,000) * * 2006 (13,265,000) (2,462,000) (950,000) (291,000) * *************************************************************************** ***************************************************** * Fiscal Year Probable Revenue Gain/(Loss) from * * Foundation School Fund * * 0193 * * 2002 $113,000 * * 2003 123,000 * * 2004 123,000 * * 2005 123,000 * * 2006 123,000 * ***************************************************** Fiscal Analysis The bill would amend Chapter 151 of the Tax Code to repeal the sales tax on the surveying of real property. The bill would amend the Professional Land Surveying Practices Act to add a $200 fee to applications for the registration, or renewal of registration, of professional land surveyors. GR-Account 0193 - Foundation School would receive $50 of each fee, and the remainder would be deposited to the General Revenue Fund 0001. The bill would take effect October 1, 2001. Methodology The estimated loss of sales tax revenue was based on the amount of sales tax currently remitted. The fiscal impact for fiscal 2002 is for a partial year, based on the October 1, 2001 effective date. The estimate of the number of professional land surveyors that would be subject to the $200 fee was obtained from the Texas Board of Professional Land Surveying. It was assumed that 2,462 active surveyors would pay the fee. The effect on Fund 001 reflects the net fiscal impact of the loss in sales tax revenue plus the gain from the $150 portion of the fee. The effect on local government units reflects the losses in sales tax revenue. The effect on GR Account 0193 reflects the gains from the $50 portion of the fee. The estimates were adjusted for an October 1, 2001 effective date. Note: The bill would repeal Article 2, Chapter 1114, 76th Legislature. The effect would be to leave a reference in the Tax Code to a subsection being removed elsewhere in the bill. 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: 464 Texas Board of Professional Land Surveying, 304 Comptroller of Public Accounts LBB Staff: JK, SD, WP, SM