TO: | Honorable Fred Hill, Chair, House Committee on Local Government Ways and Means |
FROM: | John Keel, Director, Legislative Budget Board |
IN RE: | HB395 by Merritt (Relating to the rendition of property for ad valorem tax purposes and to the imposition of a penalty for failure to render property.), As Introduced |
Dynamic Fiscal Note Analysis
Comptroller of Public Accounts
For: HB 395 by Merritt
Date: April 22, 2003
I. Revenue Impact Analysis, 2004-2008
Fiscal Year |
Gain/(Loss) to General Revenue Related Funds |
Dynamic Feedback Revenue Effect |
Net Gain/(Loss) to the General Revenue Fund 0001 |
2004 |
$0 |
$0 |
$0 |
2005 |
0 |
(1,231,000) |
(1,231,000) |
2006 |
32,134,000 |
(3,952,000) |
28,182,000 |
2007 |
67,482,000 |
(7,169,000) |
60,313,000 |
2008 |
106,294,000 |
(10,385,000) |
95,909,000 |
II. Economic Impact Analysis, 2004-2008
Fiscal Year |
Increase/ (Decrease) in Texas Personal Income |
Increase/ (Decrease) in Texas Investment |
Increase/ (Decrease) in Texas Employment |
2004 |
$0 |
$0 |
0 |
2005 |
(44,370,000) |
(91,057,000) |
(1,000) |
2006 |
(122,700,000) |
(246,323,000) |
(2,800) |
2007 |
(200,000,000) |
(381,293,000) |
(4,500) |
2008 |
(223,100,000) |
(382,485,000) |
(4,800) |
Note: The values in Section II relate to changes in macroeconomic variables relative to the Comptroller's baseline economic forecast for each individual year.
III. Economic Implications after 2008
After ten years, in 2013, this bill could be expected to decrease employment by 5,800 workers, investment by $379.1 million, and Texas Personal Income by $355.7 million.
IV. Methodology
A Texas-specific general equilibrium model was employed in calculating the economic impacts. The model distributes the value that otherwise would have been paid/saved in taxes by businesses and/or consumers among the state's economic sectors. The revenue feedback calculation was based on the historical relationships between state tax revenues and associated economic factors.
Source Agencies: | 304 Comptroller of Public Accounts
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LBB Staff: | JK, SJS
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