LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 77th Regular Session May 4, 2001 TO: Honorable Rene Oliveira, Chair, House Committee on Ways & Means FROM: John Keel, Director, Legislative Budget Board IN RE: SB1114 by Brown, J. E. "Buster" (Relating to an exemption from the sales and use tax for taxable items used in the performance of a space flight contract.), As Engrossed ************************************************************************** * No fiscal implication to the State is anticipated. * ************************************************************************** Direct costs related to an entity's space flight contract, as defined by the bill, with NASA are currently exempt from the state sales tax. The bill would exempt indirect costs related to space flight contracts with NASA. The bill would take effect September 1, 2003 if it were to receive a majority vote of the members elected to each house during the 78th Regular Session of the Texas Legislature. Note: In and of itself, the bill would have no fiscal impact, as its provisions would require additional legislation by the 78th Legislature to take effect. If such legislation were to be passed, it is estimated that the cost to the state in fiscal 2004 would be a maximum of $800,000; units of local government would experience proportionally smaller impacts. Local Government Impact No fiscal implication to units of local government is anticipated. Source Agencies: 304 Comptroller of Public Accounts LBB Staff: JK, SD, SM