LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 77th Regular Session
April 5, 2001
TO: Honorable Rodney Ellis, Chair, Senate Committee on Finance
FROM: John Keel, Director, Legislative Budget Board
IN RE: SB1479 by Madla (Relating to sales tax exemption for
certain property used in the repair, remodeling or
maintenance of aircraft.), As Introduced
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* Estimated Two-year Net Impact to General Revenue Related Funds for *
* SB1479, As Introduced: a negative impact of $(8,461,000) through *
* the biennium ending August 31, 2003, if the effective date of the *
* bill is July 1, 2001; and a negative impact of $(7,831,000) *
* through the biennium ending August 31, 2003, if the effective date *
* of the bill is September 1, 2001. *
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The following table assumes an effective date of July 1, 2001.
All Funds, Five-Year Impact:
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*Fiscal Probable Probable Probable Probable *
* Year Revenue Revenue Revenue Revenue *
* Gain/(Loss) to Gain/(Loss) to Gain/(Loss) to Gain/(Loss) to *
* General Revenue Cities Transit Counties/SPDs *
* Fund Authorities *
* 0001 *
* 2001 $(303,000) $0 $0 $0 *
* 2002 (3,916,000) (707,000) (273,000) (84,000) *
* 2003 (4,242,000) (766,000) (296,000) (91,000) *
* 2004 (4,629,000) (836,000) (322,000) (99,000) *
* 2005 (5,040,000) (910,000) (351,000) (108,000) *
* 2006 (5,491,000) (991,000) (383,000) (117,000) *
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The following table assumes an effective date of September 1, 2001.
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*Fiscal Probable Probable Probable Probable *
* Year Revenue Revenue Revenue Revenue *
* Gain/(Loss) to Gain/(Loss) to Gain/(Loss) to Gain/(Loss) to *
* General Revenue Cities Transit Counties/SPDs *
* Fund Authorities *
* 0001 *
* 2002 $(3,589,000) $(589,000) $(227,000) $(70,000) *
* 2003 (4,242,000) (766,000) (296,000) (91,000) *
* 2004 (4,629,000) (836,000) (322,000) (99,000) *
* 2005 (5,040,000) (910,000) (351,000) (108,000) *
* 2006 (5,491,000) (991,000) (383,000) (117,000) *
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Fiscal Analysis
The bill would amend Chapter 151 of the Tax Code to exempt machinery,
tools, supplies, and equipment used or consumed exclusively in the
repair, remodeling, or maintenance of aircraft, aircraft engines, or
aircraft component parts.
The relevant work would have to be performed by or on behalf of the
United States, an unincorporated instrumentality of the United States, or
by a corporation that is an agency or instrumentality of the United
States and wholly-owned by the United States or by another corporation
wholly-owned by the United States.
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
Data on the sale of machinery and equipment used for the repair of
aircraft were gathered from the U. S. Census Bureau. Sales were
adjusted to reflect activity in Texas for the specified entities,
multiplied by the state sales tax rate, adjusted for potential effective
dates of July 1, 2001 and September 1, 2001, and extrapolated through
2006. The fiscal impact on units of local government were estimated
proportionally.
Local Government Impact
Local units of government would have a corresponding fiscal impact from
sales tax revenues, as indicated in the tables above.
Source Agencies: 304 Comptroller of Public Accounts
LBB Staff: JK, SD, SM