LEGISLATIVE BUDGET BOARD
Austin, Texas
 
FISCAL NOTE, 78TH LEGISLATIVE REGULAR SESSION
 
April 30, 2003

TO:
Honorable Ron Wilson, Chair, House Committee on Ways & Means
 
FROM:
John Keel, Director, Legislative Budget Board
 
IN RE:
HB855 by West, George "Buddy" (Relating to the application of the sales tax to certain bingo equipment.), As Introduced



Estimated Two-year Net Impact to General Revenue Related Funds for HB855, As Introduced: a negative impact of ($286,000) through the biennium ending August 31, 2005.



Fiscal Year Probable Net Positive/(Negative) Impact to General Revenue Related Funds
2004 ($127,000)
2005 ($159,000)
2006 ($166,000)
2007 ($173,000)
2008 ($180,000)




Fiscal Year Probable Revenue Gain/(Loss) from
GENERAL REVENUE FUND
1 		Probable Revenue Gain/(Loss) from
Cities		 Probable Revenue Gain/(Loss) from
Transit Authorities		 Probable Revenue Gain/(Loss) from
Counties/Special Districts
2004 ($127,000) ($21,000) ($8,000) ($3,000)
2005 ($159,000) ($29,000) ($11,000) ($4,000)
2006 ($166,000) ($31,000) ($11,000) ($4,000)
2007 ($173,000) ($32,000) ($11,000) ($4,000)
2008 ($180,000) ($33,000) ($12,000) ($4,000)

Fiscal Analysis

The bill would create Section 151.3105 of the Tax Code to exempt bingo equipment, as defined by Section 2001.002 of the Occupations Code, from the sales tax. To qualify for the exemption, the equipment would have to be purchased by an organization licensed to conduct bingo under Chapter 2001 of the Occupations Code. The organization also would have to be exempt from the payment of federal income taxes, and the equipment would have to be used exclusively to conduct bingo.

The bill would take effect October 1, 2003.


Methodology

The bill would exempt bingo equipment purchased and used by those conducting bingo games. Qualifying organizations would include fraternal, nonprofit, veterans', and religious organizations licensed to conduct bingo games in Texas, as well as other authorized organizations licensed to conduct such games.

The estimated annual sales in Texas of items proposed for exemption was multiplied by the state sales tax rate, extrapolated through 2008, and adjusted for an effective date of October 1, 2003. The fiscal impacts 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 above table.


Source Agencies:
304 Comptroller of Public Accounts, 362 Texas Lottery Commission
LBB Staff:
JK, SD, WP, SM