LEGISLATIVE BUDGET BOARD
Austin, Texas
 
FISCAL NOTE, 78TH LEGISLATIVE REGULAR SESSION
 
May 4, 2003

TO:
Honorable Ron Wilson, Chair, House Committee on Ways & Means
 
FROM:
John Keel, Director, Legislative Budget Board
 
IN RE:
SB896 by Bivins (Relating to tax refunds and credits.), As Engrossed



Estimated Two-year Net Impact to General Revenue Related Funds for SB896, As Engrossed: a positive impact of $25,000,000 through the biennium ending August 31, 2005.



Fiscal Year Probable Net Positive/(Negative) Impact to General Revenue Related Funds
2004 $0
2005 $25,000,000
2006 $35,000,000
2007 $45,000,000
2008 $55,000,000




Fiscal Year Probable Revenue Gain/(Loss) from
GENERAL REVENUE FUND
1 		Probable Revenue Gain/(Loss) from
FOUNDATION SCHOOL FUND
193
2004 $0 $0
2005 $22,500,000 $2,500,000
2006 $32,500,000 $2,500,000
2007 $42,500,000 $2,500,000
2008 $52,500,000 $2,500,000

Fiscal Analysis

The bill would amend Chapter 111 of the Tax Code to clarify statutes relating to the filing of tax refund claims. The bill would require the reasons for a refund to be included with a claim, and it would amend provisions relating to administrative hearings on refund claims and the tolling of limitation periods. The bill would repeal Section 111.207(d) of the Tax Code, relating to the tolling of limitation period for tax refunds.

Further, the bill would amend the amount of time available to receive a credit or refund on high-cost gas.

The bill would take effect immediately upon enactment, assuming that it received the requisite two-thirds majority votes in both houses of the Legislature. Otherwise, it would take effect September 1, 2003.

The bill only would apply to a claim for a refund made on or after the effective date, without regard to whether the taxes subject to the claim were due before, on, or after that date.


Methodology

The bill would implement recommendation GG 30 from the Comptroller's e-Texas report, Limited Government, Unlimited Opportunity to amend and clarify several refund provisions within the Tax Code that are subject to interpretation, and to codify Comptroller administrative requirements for the processing of claims. The net effect would be to save revenue by eliminating loopholes and decreasing abuse of the refund process. Savings would increase over time as more refund claims became subject to the provisions in this bill.

In addition to the above provisions, the bill would specify that, in regard to a certified high-cost gas well, a person could not request a refund of gas production taxes imposed on gas from such a well more than two years before application for certification.


Local Government Impact

To the degree that local tax refunds administered by the Comptroller's office, including but not limited to sales tax refunds, are affected, there would be a positive fiscal impact to certain local governments.


Source Agencies:
304 Comptroller of Public Accounts
LBB Staff:
JK, JO, SD, WP