LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 77th Regular Session
May 10, 2001
TO: Honorable Rene Oliveira, Chair, House Committee on Ways &
Means
FROM: John Keel, Director, Legislative Budget Board
IN RE: SB63 by Moncrief (Relating to a franchise tax credit for
wages paid to persons with certain disabilities.),
Committee Report 2nd House, as amended
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* Estimated Two-year Net Impact to General Revenue Related Funds for *
* SB63, Committee Report 2nd House, as amended: negative impact of *
* $(506,000) 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 $0 *
* 2003 (506,000) *
* 2004 (1,188,000) *
* 2005 (1,230,000) *
* 2006 (1,274,000) *
****************************************************
All Funds, Five-Year Impact:
*****************************************************
* Fiscal Year Probable Revenue Gain/(Loss) from *
* General Revenue Fund *
* 0001 *
* 2002 $0 *
* 2003 (506,000) *
* 2004 (1,188,000) *
* 2005 (1,230,000) *
* 2006 (1,274,000) *
*****************************************************
Fiscal Analysis
The bill creates a franchise tax credit for the hiring of certain
disabled individuals. The credit would be equal to 10 percent of the
wages of the eligible employees hired.
A corporation would qualify for the credit by hiring individuals who are
eligible for federal Supplemental Security Income (SSI) benefits on the
basis of a disability or blindness or who receive Social Security
disability insurance benefits. Such individuals must be employed for at
least six months, work at least 20 hours per week, be paid at least the
minimum wage, and receive the same benefits as other workers. The
corporation could claim the credit for the first two years of employment
of the eligible employee.
The bill takes effect January 1, 2002 and would apply only to franchise
tax reports with expense data for wages paid to employees on or after
that date.
Methodology
This estimate is based upon Comptroller analysis of federal statistical
data. Social Security Administration aggregate data was used to estimate
the number of Texas SSI recipients. U.S. Census Bureau data provided
the number and average wage income of Texas SSI recipients. Lastly, the
Internal Revenue Service provided information on the corporate share of
overall wages. A combination of the data from all these sources
determined the fiscal impact.
The bill would have no fiscal impact in fiscal year 2002, because the
corporate accounting year on which the fiscal year 2002 tax report is
based would be concluded before the bill's effective date. The bill
would have a reduced revenue impact in fiscal year 2003 because the
accounting year for non-calendar-year corporations would be partially
completed before the bill's effective date. Only in fiscal year 2004
would the bill be fully implemented.
Local Government Impact
No fiscal implication to units of local government is anticipated.
Source Agencies: 304 Comptroller of Public Accounts
LBB Staff: JK, SD, JO, WP, CT