LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 77th Regular Session
March 27, 2001
TO: Honorable Rene Oliveira, Chair, House Committee on Ways &
Means
FROM: John Keel, Director, Legislative Budget Board
IN RE: HB3272 by Oliveira (Relating to the time period for the
sales and use tax exemption for clothing and footwear.),
As Introduced
**************************************************************************
* Estimated Two-year Net Impact to General Revenue Related Funds for *
* HB3272, As Introduced: a negative impact of $(121,095,000) through *
* the biennium ending August 31, 2003, if the effective date of the *
* bill is July 1, 2001; and a negative impact of $(70,718,000) *
* through the biennium ending August 31, 2003, if the effective date *
* of the bill is October 1, 2001. *
**************************************************************************
The following table assumes an effective date of July 1, 2001.
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 *
* 2001 $(17,833,000) $0 $0 $0 *
* 2002 (50,850,000) (9,181,000) (3,543,000) (1,086,000) *
* 2003 (52,412,000) (9,464,000) (3,652,000) (1,120,000) *
* 2004 (54,413,000) (9,825,000) (3,791,000) (1,162,000) *
* 2005 (56,636,000) (10,226,000) (3,946,000) (1,210,000) *
* 2006 (58,861,000) (10,628,000) (4,101,000) (1,257,000) *
***************************************************************************
The following table assumes an effective date of October 1, 2001.
***************************************************************************
*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 $(18,306,000) $0 $0 $0 *
* 2003 (52,412,000) (9,464,000) (3,652,000) (1,120,000) *
* 2004 (54,413,000) (9,825,000) (3,791,000) (1,162,000) *
* 2005 (56,636,000) (10,226,000) (3,946,000) (1,210,000) *
* 2006 (58,861,000) (10,628,000) (4,101,000) (1,257,000) *
***************************************************************************
Fiscal Analysis
The bill would amend Chapter 151 of the Tax Code to extend the limited
sales tax exemption for certain clothing and footwear from the current
three-day period to ten days. The exemption would take place each
August.
The bill would take effect July 1, 2001 if it received the requisite
two-thirds majority votes in both houses of the Legislature. Otherwise,
it would take effect October 1, 2001.
Methodology
Estimates were based on the fiscal impact of the current three-day
holiday, using Comptroller tax files. These were adjusted for the
expanded time period and potential effective dates of July 1, 2001 and
October 1, 2001. The fiscal impacts on units of local government were
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