LEGISLATIVE BUDGET BOARD
                              Austin, Texas
                                     
                    FISCAL NOTE, 77th Regular Session
  
                              March 16, 2001
  
  
          TO:  Honorable Rene Oliveira, Chair, House Committee on Ways &
               Means
  
        FROM:  John Keel, Director, Legislative Budget Board
  
       IN RE:  SB848  by Ellis, Rodney (Relating to crediting interest
               to a suspense account of the comptroller and transferring
               accumulated interest from the account.), As Engrossed
  
**************************************************************************
*  Estimated Two-year Net Impact to General Revenue Related Funds for    *
*  SB848, As Engrossed:  positive impact of $99,000,000 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                          $99,000,000  *
          *       2003                                    0  *
          *       2004                                    0  *
          *       2005                                    0  *
          *       2006                                    0  *
          ****************************************************
  
All Funds, Five-Year Impact:
  
         *****************************************************
         * Fiscal Year    Probable Revenue Gain/(Loss) from   *
         *                      General Revenue Fund          *
         *                              0001                  *
         *      2002                              $99,000,000 *
         *      2003                                        0 *
         *      2004                                        0 *
         *      2005                                        0 *
         *      2006                                        0 *
         *****************************************************
  
Fiscal Analysis
  
The bill would amend Chapter 404 of the Government Code to authorize the
transfer of accumulated interest in a Comptroller suspense account to
the General Revenue Fund 0001.
  
  
Methodology
  
The bill would implement recommendation AFM-4 from the Comptroller's
report, e-Texas:  Smaller, Smarter, Faster Government.

Under current law, when a tax assessment is protested by a taxpayer, the
taxpayer must pay the disputed amount.  That amount is then deposited in
Fund 0001.  Interest on the payment is held in suspense and unavailable
for state spending.  If the taxpayer is ultimately successful in
protesting the payment, the payment is returned with interest.  If the
state is successful in upholding the assessment, the payment plus
interest is credited to the fund to which the payment was due.  The bill
would authorize the transfer of any accumulated interest held in suspense
to Fund 0001.

This 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 on the 91st day after the
last day of the legislative session.
  
  
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