LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 77th Regular Session March 13, 2001 TO: Honorable Rene Oliveira, Chair, House Committee on Ways & Means FROM: John Keel, Director, Legislative Budget Board IN RE: SB640 by Duncan (Relating to electronic filing of certain tax reports and payments.), As Engrossed ************************************************************************** * Estimated Two-year Net Impact to General Revenue Related Funds for * * SB640, As Engrossed: positive impact of $976,000 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 $407,000 * * 2003 569,000 * * 2004 569,000 * * 2005 569,000 * * 2006 569,000 * **************************************************** All Funds, Five-Year Impact: ***************************************************** * Fiscal Year Probable Revenue Gain/(Loss) from * * General Revenue Fund * * 0001 * * 2002 $407,000 * * 2003 569,000 * * 2004 569,000 * * 2005 569,000 * * 2006 569,000 * ***************************************************** Technology Impact There would be no significant technology impact to the Comptroller's office. Fiscal Analysis The bill would amend Chapter 111 of the Tax Code to direct the Comptroller to require, by rule, the electronic transfer of certain tax payments. Taxpayers that paid $100,000 or more in the preceding fiscal year in a category of payments would have to transfer those taxes to the Comptroller electronically, if the Comptroller reasonably anticipated that the person would pay at least that amount in the current fiscal year. In addition, the bill would require the Comptroller to adopt, by rule, a requirement that oil production, international fuels tax agreement, natural gas, and sales and use taxpayers that currently have to file tax payments electronically to also file their tax reports electronically. The Comptroller could impose a penalty equivalent to 5 percent of the tax due for failure to adhere to the requirements of the bill. The bill would take effect immediately upon enactment, assuming that it received the requisite two-thirds majority votes in both houses of the Legislature. Otherwise, it would take effect September 1, 2001. Methodology The bill would implement the recommendations of EG-7 from the Comptroller's report, e-Texas: Smaller, Smarter, Faster Government. Annual savings to the General Revenue Fund 0001 would arise from annual gains in interest income attributable to an estimated three-day decrease in processing time. There would be a nominal gain (approximately $2,000 per year for all other funds combined) in interest gained to other funds; however, since there are several of these other funds, they are not listed in the above table. The estimate for fiscal 2002 is prorated to account for annual tax reports due on or after January 1, 2002. Local Government Impact No fiscal implication to units of local government is anticipated. Source Agencies: 304 Comptroller of Public Accounts LBB Staff: JK, SD, WP