LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 77th Regular Session April 17, 2001 TO: Honorable Rene Oliveira, Chair, House Committee on Ways & Means FROM: John Keel, Director, Legislative Budget Board IN RE: HB3025 by Chisum (Relating to an exemption from the sales and use tax for environment and conservation services.), As Introduced ************************************************************************** * Estimated Two-year Net Impact to General Revenue Related Funds for * * HB3025, As Introduced: negative impact of $(71,316,000) 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 $(33,041,000) * * 2003 (38,275,000) * * 2004 (40,953,000) * * 2005 (43,828,000) * * 2006 (47,078,000) * **************************************************** 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 $(33,041,000) $(5,423,000) $(2,093,000) $(642,000) * * 2003 (38,275,000) (6,911,000) (2,667,000) (818,000) * * 2004 (40,953,000) (7,394,000) (2,853,000) (875,000) * * 2005 (43,828,000) (7,914,000) (3,053,000) (936,000) * * 2006 (47,078,000) (8,500,000) (3,280,000) (1,006,000) * *************************************************************************** Fiscal Analysis The bill would amend Chapter 151 of the Tax Code to exempt from the state sales and use tax: services involved in the repair, remodeling, modification, or restoration of an improvement to real property if the repair, remodeling, modification, or restoration services had been purchased to meet or exceed the requirements of any statute, ordinance, order, rule, or regulation of any commission, agency, court, or political, governmental, or quasi-governmental entity to protect the environment. The bill would take effect September 1, 2001. Methodology Data on non-residential repair and remodeling services and real property services were gathered from the U. S. Census Bureau and Comptroller tax files. Sales were adjusted to address only those amounts purchased to meet or exceed environmental regulations to protect the environment, multiplied by the state sales tax rate, adjusted for effective date, and extrapolated through 2006. The fiscal impact on units of local government was estimated proportionally. 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: 304 Comptroller of Public Accounts LBB Staff: JK, SD, SM