TO: | Honorable Kino Flores, Chair, House Committee on Licensing & Administrative Procedures |
FROM: | John S. O'Brien, Deputy Director, Legislative Budget Board |
IN RE: | HB275 by Farrar ( relating to the application fee for wine and beer retailer's permits and retail dealer's on-premise licenses.), Committee Report 1st House, Substituted |
Fiscal Year | Probable Net Positive/(Negative) Impact to General Revenue Related Funds |
---|---|
2006 | $1,856,275 |
2007 | $1,939,675 |
2008 | $1,978,100 |
2009 | $2,017,100 |
2010 | $2,057,500 |
Fiscal Year | Probable Revenue Gain/(Loss) from GENERAL REVENUE FUND 1 |
Probable Savings/(Cost) from GENERAL REVENUE FUND 1 |
---|---|---|
2006 | $1,902,075 | ($45,800) |
2007 | $1,939,675 | $0 |
2008 | $1,978,100 | $0 |
2009 | $2,017,100 | $0 |
2010 | $2,057,500 | $0 |
The bill would amend the Alcoholic Beverage Code to increase the annual state fee for a wine and beer retailer's permit and retail dealer's on-premise license for premises located in a county with a population of 1.4 million or more from $175 to $1,000 for an original permit and $750 for renewals.
The bill would apply only to an application for an original or renewal wine and beer retailer's permit or retail dealer's on-premise license filed on or after the effective date of the bill.
The bill would take effect September 1, 2005.
According to the 2000 federal census, only Harris County, Tarrant County, and Dallas County meet the population requirements of the bill. The Alcoholic Beverage Commission (TABC) reports that there are currently 2,775 wine and beer retailer's permits and 521 retail dealer's on-premise licenses in Harris County, Tarrant County, and Dallas County. Based on this information, TABC estimates that the increase in revenue to the state because of increases in the cost of wine and beer retailer's permits and retail dealer's on-premise licenses would be $1,902,075 in fiscal year 2006, $1,939,675 in fiscal year 2007, $1,978,100 in fiscal year 2008, $2,017,100 in fiscal year 2009, and $2,057,500 in fiscal year 2010. For the purposes of this fiscal note, TABC assumed a 2 percent per fiscal year growth in wine and beer retailer's permits and retail dealer's on-premise licenses.
Additionally, TABC reports that there would be start-up costs of $45,800 in fiscal year 2006 for programming updates and modifications to TABC systems, updates to publications and applications, and travel.
The Comptroller of Public Accounts reports that city and county governments separately may levy local fees of up to one-half of the state fee. However, the fiscal impact on city and county governments cannot be estimated because the fiscal implications would depend upon the number of entities that modify their local fees in response to the increase in the state fee.
Source Agencies: | 304 Comptroller of Public Accounts, 458 Alcoholic Beverage Commission
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LBB Staff: | JOB, JRO, VDS, SJ
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