TO: | Honorable Teel Bivins, Chair, Senate Committee on Finance |
FROM: | John Keel, Director, Legislative Budget Board |
IN RE: | SB793 by Nelson (Relating to the application of the sales and use tax to biotechnology cleanrooms and equipment.), As Introduced |
The following table assumes an effective date of July 1, 2003.
Fiscal Year | Probable Revenue Gain/(Loss) fromGENERAL REVENUE FUND 1 |
Probable Revenue Gain/(Loss) fromCities | Probable Revenue Gain/(Loss) fromTransit Authorities | Probable Revenue Gain/(Loss) fromCounties/Special Districts |
---|---|---|---|---|
2003 | ($5,213,000) | $0 | $0 | $0 |
2004 | ($66,807,000) | ($12,294,000) | ($4,430,000) | ($1,536,000) |
2005 | ($72,407,000) | ($13,324,000) | ($4,801,000) | ($1,665,000) |
2006 | ($78,041,000) | ($14,361,000) | ($5,175,000) | ($1,794,000) |
2007 | ($83,223,000) | ($15,315,000) | ($5,519,000) | ($1,913,000) |
2008 | ($88,499,000) | ($16,286,000) | ($5,868,000) | ($2,035,000) |
The following table assumes an effective date of September 1, 2003.
Fiscal Year | Probable Revenue Gain/(Loss) fromGENERAL REVENUE FUND 1 |
Probable Revenue Gain/(Loss) fromCities | Probable Revenue Gain/(Loss) fromTransit Authorities | Probable Revenue Gain/(Loss) fromCounties/Special Districts |
---|---|---|---|---|
2004 | ($61,240,000) | ($10,245,000) | ($3,692,000) | ($1,280,000) |
2005 | ($72,407,000) | ($13,324,000) | ($4,801,000) | ($1,665,000) |
2006 | ($78,041,000) | ($14,361,000) | ($5,175,000) | ($1,794,000) |
2007 | ($83,223,000) | ($15,315,000) | ($5,519,000) | ($1,913,000) |
2008 | ($88,499,000) | ($16,286,000) | ($5,868,000) | ($2,035,000) |
The bill would amend Section 151.318 of the Tax Code to include "biotechnology cleanrooms and equipment," including but not limited to pharmaceutical cleanrooms and equipment, under the sales tax exemption for property used in manufacturing. "Biotechnology cleanrooms and equipment" would mean all tangible personal property, without regard to whether the property was affixed to or incorporated into realty, used in connection with the manufacturing, processing, or fabrication in a cleanroom environment of a biotechnology product, without regard to whether the property was actually contained in the cleanroom environment.
Biotechnology cleanrooms would include lighting, fixtures, piping, and other property, machinery, and equipment necessary to reduce contamination or control environmental conditions or manufacturing tolerances. The term would not include the building or permanent components of the building that house the cleanroom environment. Biotechnology cleanrooms would not be considered intraplant transportation equipment.
The bill would amend Section 313.021(2) of the Tax Code to include biotechnology cleanrooms and equipment under the definition of "qualified property" as it relates to the Texas Economic Development Act.
The bill would take effect July 1, 2003, assuming that it received the requisite two-thirds majority votes in both houses of the Legislature. Otherwise, it would take effect September 1, 2003.
Source Agencies: | 304 Comptroller of Public Accounts
|
LBB Staff: | JK, JO, SD, WP, SM
|