| TO: | Honorable Ron Wilson, Chair, House Committee on Ways & Means |
| FROM: | John Keel, Director, Legislative Budget Board |
| IN RE: | HB3263 by Ritter (Relating to taxes administered by the comptroller of public accounts.), As Introduced |
| Fiscal Year | Probable Net Positive/(Negative) Impact to General Revenue Related Funds |
|---|---|
| 2004 | $24,875,000 |
| 2005 | $36,700,000 |
| 2006 | $41,060,000 |
| 2007 | $44,463,000 |
| 2008 | $49,915,000 |
| Fiscal Year | Probable Revenue Gain/(Loss) fromGENERAL REVENUE FUND 1 |
Probable Revenue Gain/(Loss) fromAVAILABLE SCHOOL FUND 2 |
Probable Revenue Gain/(Loss) fromFOUNDATION SCHOOL FUND 193 |
Probable Revenue Gain/(Loss) fromSTATE HIGHWAY FUND 6 |
|---|---|---|---|---|
| 2004 | $20,625,000 | $2,292,000 | $1,958,000 | $6,875,000 |
| 2005 | $30,200,000 | $3,000,000 | $3,500,000 | $9,000,000 |
| 2006 | $33,700,000 | $3,360,000 | $4,000,000 | $10,080,000 |
| 2007 | $35,950,000 | $3,763,000 | $4,750,000 | $11,290,000 |
| 2008 | $39,700,000 | $4,215,000 | $6,000,000 | $12,644,000 |
The bill would amend Chapter 151 of the Tax Code to include tangible personal property that has been processed, fabricated, or manufactured into other property or incorporated into other property under the definition of use as it relates to the sales tax.
The bill would add sections to exclude certain sales of tangible personal property from the current sale for resale exemption when the property was used or consumed while performing a contract.
The bill would amend Chapter 201 of the Tax Code to change the time available to receive a credit or refund on high-cost gas. The bill would also amend statutes relating to the market value and cash sale of natural gas and create a definition for "allowable marketing costs."
The previous three provisions would provide most of the revenue gain shown in the table.
The bill would amend Chapter 153 of the Tax Code to specify that the climate-control air conditioning or heating system of a motor vehicle would not be a power take-off system, and gasoline tax or diesel fuel tax paid for the use of fuel for that purpose could not be refunded.
The sales tax provisions of this bill would become effective October 1, 2003. Otherwise, this bill would take effect September 1, 2003.
The bill would amend and clarify several provisions within the Tax Code that are subject to interpretation, and it would codify Comptroller administrative requirements for the processing of claims. The net effect would be to save revenue by eliminating loopholes and reducing refund claims for the instances summarized above.
| Source Agencies: | 304 Comptroller of Public Accounts, 455 Railroad Commission
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| LBB Staff: | JK, JO, SD, WP, SM
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