TO: | Honorable David Dewhurst , Lieutenant Governor, Senate Honorable Tom Craddick, Speaker of the House, House of Representatives |
FROM: | John Keel, Director, Legislative Budget Board |
IN RE: | HB2424 by McCall (Relating to technical changes to taxes and fees administered by the comptroller; providing penalties.), Conference Committee Report |
Fiscal Year | Probable Net Positive/(Negative) Impact to General Revenue Related Funds |
---|---|
2004 | $0 |
2005 | $0 |
2006 | ($344,000) |
2007 | ($753,000) |
2008 | ($783,000) |
Fiscal Year | Probable Revenue Gain/(Loss) from GENERAL REVENUE FUND 1 |
---|---|
2004 | $0 |
2005 | $0 |
2006 | ($344,000) |
2007 | ($753,000) |
2008 | ($783,000) |
The bill would amend various sections of the Tax Code and other statutes to clarify administrative and technical issues relating to taxes and fees collected by the Comptroller.
The revenue losses shown in the revenue table relate to the expansion of a franchise tax credit for capital investment. The bill would allow a corporation to claim a franchise credit or carry forward a credit for a qualified capital investment made on or after January 1, 2003, without regard to whether the county in which the corporation made the investment had lost its designation as being within the strategic investment area under the following conditions: (1) the corporation committed to the investment in that county before January 2003, (2) at the time the corporation made the commitment, the county was within the strategic investment area, (3) the total investment was at least $100 million, (4) the county had a population of less than 15,700, and (5) the corporation had made qualifying investments in the county in each of the prior two years.
Provisions of the bill may provide state sales tax and state hotel tax rebates for certain hotel projects that are owned or located on land owned by a municipality or non-profit corporation acting on behalf of a municipality. These provisions may result in a loss of state revenue. Such losses are not reflected in the table above.
Source Agencies: | 304 Comptroller of Public Accounts
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LBB Staff: | JK, SD, WP, RS
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