LEGISLATIVE BUDGET BOARD
                              Austin, Texas
                                     
                    FISCAL NOTE, 77th Regular Session
                                Revision 1
  
                              April 24, 2001
  
  
          TO:  Honorable Rodney Ellis, Chair, Senate Committee on Finance
  
        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.),
               Committee Report 1st House, Substituted
  
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*  No fiscal implication to the State is anticipated.                    *
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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 the provisions of the bill were to take effect, it
is estimated that the cost to the state in fiscal 2004 would be
$1,681,000; 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