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: HB3280 by Oliveira (Relating to exempting certain child
safety products from the sales and use tax for a limited
time.), As Introduced
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* Estimated Two-year Net Impact to General Revenue Related Funds for *
* HB3280, As Introduced: a negative impact of $(876,000) through the *
* biennium ending August 31, 2003, if the effective date of the bill *
* is July 1, 2001; and a negative impact of $(510,000) through the *
* biennium ending August 31, 2003, if the effective date of the bill *
* is October 1, 2001. *
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The following table assumes an effective date of July 1, 2001.
All Funds, Five-Year Impact:
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*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 $(130,000) $0 $0 $0 *
* 2002 (369,000) (67,000) (26,000) (8,000) *
* 2003 (377,000) (68,000) (26,000) (8,000) *
* 2004 (386,000) (70,000) (27,000) (8,000) *
* 2005 (394,000) (71,000) (27,000) (8,000) *
* 2006 (404,000) (73,000) (28,000) (9,000) *
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The following table assumes an effective date of October 1, 2001.
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*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 $(133,000) $0 $0 $0 *
* 2003 (377,000) (68,000) (26,000) (8,000) *
* 2004 (386,000) (70,000) (27,000) (8,000) *
* 2005 (394,000) (71,000) (27,000) (8,000) *
* 2006 (404,000) (73,000) (28,000) (9,000) *
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Fiscal Analysis
The bill would amend Chapter 151 of the Tax Code to exempt certain child
safety products from the state sales and use tax during the current sales
tax holiday period if the sales price of the product were less than $50.
Bicycle helmets, elbow pads and knee pads would qualify for the
exemption. Child passenger safety seat systems, as defined by the
Transportation Code, would qualify for the exemption if the price of the
system were less than $100.
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
Data on the sale of child safety products were obtained from public and
private sources, including the U.S. Census Bureau. The data were
adjusted for the specified items, adjusted for the appropriate price
range and time period, multiplied by the state sales tax rate, adjusted
for the potential effective dates of July 1, 2001 and October 1, 2001,
and extrapolated through fiscal 2006. 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