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