LEGISLATIVE BUDGET BOARD
                              Austin, Texas
                                     
                    FISCAL NOTE, 77th Regular Session
  
                              April 27, 2001
  
  
          TO:  Honorable Rodney Ellis, Chair, Senate Committee on Finance
  
        FROM:  John Keel, Director, Legislative Budget Board
  
       IN RE:  SB1184  by Van de Putte (Relating to simplified sales and
               use tax administration.), Committee Report 1st House,
               Substituted
  
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*  No fiscal implication to the State is anticipated.                    *
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The bill would make the statutory modifications necessary for Texas to
join the Streamlined Sales and Use Tax Agreement and fully participate in
multi-state discussions and negotiations regarding the simplification
and modernization of sales tax administration.  The bill, however, would
not affect the current administration of the state's sales and use tax
and would therefore have no fiscal impact on the state or on units of
local government.

The bill would amend Title 2 of the Tax Code to establish the Simplified
Sales and Use Tax Administration Act.  The Streamlined Sales and Use Tax
Agreement would be a multi-state effort to simplify and modernize sales
and use tax administration within the member states to reduce the burden
of tax compliance.  The bill would authorize the Comptroller to take
actions reasonably required to implement and further the agreement.

The Comptroller would not be able to enter into the Streamlined Sales and
Use Tax Agreement unless the agreement required each state to comply
with specific provisions in the agreement.  These provisions would
include:  limiting over time the number of state sales and use tax rates;
establishing uniform standards for the administration of sales and use
taxes among member states; providing a central electronic registration
system that would allow sellers to register to collect and remit sales
and use taxes for member states; and reducing the burden of compliance
with local sales and use taxes.

The bill would hold that a law of this state could not be declared
invalid on the ground that it conflicts with the provisions of the
proposed agreement and that a state law could not be amended or modified
by the adoption of the agreement.

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.
  
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, SM