LEGISLATIVE BUDGET BOARD
                              Austin, Texas
                                     
                    FISCAL NOTE, 77th Regular Session
  
                             February 7, 2001
  
  
          TO:  Honorable Rodney Ellis, Chair, Senate Committee on Finance
  
        FROM:  John Keel, Director, Legislative Budget Board
  
       IN RE:  SB413  by Madla (Relating to an exemption from sales and
               use tax for certain bingo equipment.), As Introduced
  
**************************************************************************
*  Estimated Two-year Net Impact to General Revenue Related Funds for    *
*  SB413, As Introduced:  negative impact of $(279,000) 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                           $(124,000)  *
          *       2003                            (155,000)  *
          *       2004                            (161,000)  *
          *       2005                            (167,000)  *
          *       2006                            (174,000)  *
          ****************************************************
  
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        $(124,000)       $(18,000)        $(7,000)        $(2,000) *
*  2003         (155,000)        (25,000)        (10,000)         (3,000) *
*  2004         (161,000)        (26,000)        (10,000)         (3,000) *
*  2005         (167,000)        (27,000)        (10,000)         (3,000) *
*  2006         (174,000)        (28,000)        (11,000)         (3,000) *
***************************************************************************
  
Fiscal Analysis
  
The bill would amend Chapter 151 of the Tax Code to exempt certain bingo
equipment, devices, and supplies from the sales and use tax.

The exemption would extend to organizations licensed to conduct bingo, if
the equipment were purchased and used exclusively to conduct bingo as
authorized under Chapter 2001 of the Occupations Code.

The bill would take effect October 1, 2001.
  
  
Methodology
  
The bill would exempt bingo equipment purchased and used by those
conducting bingo games.  Qualifying organizations would include
fraternal, nonprofit, veteran's, and religious organizations licensed to
conduct bingo games in Texas, as well as other authorized organizations
licensed to conduct such games.

The estimated annual sales in Texas of items proposed for exemption was
multiplied by the state sales tax rate, extrapolated through 2006, and
adjusted for an effective date of 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