TO: | Honorable Ron Wilson, Chair, House Committee on Ways & Means |
FROM: | John Keel, Director, Legislative Budget Board |
IN RE: | HB1002 by Thompson (Relating to the repeal of state and local taxes.), As Introduced |
Fiscal Year | Probable Net Positive/(Negative) Impact to General Revenue Related Funds |
---|---|
2004 | $0 |
2005 | $0 |
2006 | ($24,506,493,000) |
2007 | ($25,346,312,000) |
2008 | ($26,120,999,000) |
Fiscal Year | Probable Revenue Gain/(Loss) fromGENERAL REVENUE FUND 1 |
Probable Revenue Gain/(Loss) fromAll General Revenue Dedicated Accounts | Probable Revenue Gain/(Loss) fromAll Other Funds | Probable Revenue Gain/(Loss) fromAll Local Units of Government |
---|---|---|---|---|
2004 | $0 | $0 | $0 | $0 |
2005 | $0 | $0 | $0 | $0 |
2006 | ($24,506,493,000) | ($16,157,000) | ($2,085,586,000) | ($39,807,115,000) |
2007 | ($25,346,312,000) | ($16,515,000) | ($2,149,976,000) | ($42,349,140,000) |
2008 | ($26,120,999,000) | ($16,880,000) | ($2,241,866,000) | ($45,059,470,000) |
The bill would repeal the Tax Code.
The revenue sources repealed would include many of the state's major sources of tax revenues: limited sales and use, motor vehicle sales, motor fuels, franchise, gas & oil severance, tobacco, and mixed beverage. The bill would remove the authority for units of local government to levy property, sales (with some exceptions), and hotel occupancy taxes.
The bill would take effect September 1, 2005.
The repeal of the Tax Code would eliminate taxes levied under the code as well as the Comptroller's authority to collect them, thus it was assumed that revenue collections from these taxes would cease on the bill's effective date. This assumption also would apply to the collection of property taxes by local units of government. This analysis assumes there would be no behavioral effect by the taxpayers (i.e., remaining taxes and fees increasing as amounts formerly paid as tax now re-directed). There are some state taxes, as well as local taxes, enacted in other codes that would not be affected by this bill.
The Comptroller's office indicates there would be some initial administrative costs to the agency, then once the repeal took effect, there would be administrative savings.
Source Agencies: | 304 Comptroller Of Public Accounts
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LBB Staff: | JK, JO, SD, WP
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