Honorable Troy Fraser, Chair, Senate Committee on Business & Commerce
FROM:
John S. O'Brien, Deputy Director, Legislative Budget Board
IN RE:
SB269 by Madla (Relating to certain administrative fees and taxes collected by the Texas Alcoholic Beverage Commission.), As Introduced
Estimated Two-year Net Impact to General Revenue Related Funds for SB269, As Introduced: a positive impact of $550,000 through the biennium ending August 31, 2007.
The bill would make no appropriation but could provide the legal basis for an appropriation of funds to implement the provisions of the bill.
Fiscal Year
Probable Net Positive/(Negative) Impact to General Revenue Related Funds
2006
$275,000
2007
$275,000
2008
$275,000
2009
$275,000
2010
$275,000
Fiscal Year
Probable Revenue Gain/(Loss) from GENERAL REVENUE FUND 1
2006
$275,000
2007
$275,000
2008
$275,000
2009
$275,000
2010
$275,000
Fiscal Analysis
The bill would amend the Alcoholic Beverage Code to allow the Alcoholic Beverage Commission to round the amount up to the nearest quarter of a dollar when computing the total amount of taxes and administrative fees to be collected on alcoholic beverages imported by a person into the state for personal use. The bill would further allow the Alcoholic Beverage Commission to round the total amount up to the nearest quarter of a dollar when computing the amount of taxes to be collected from cigarettes imported into the state. The bill would take effect September 1, 2005.
Methodology
The bill would permit, but not require, the Alcoholic Beverage Commission to round up to the nearest quarter of a dollar when computing the taxes and fees. If the provisions of the bill were fully implemented by the Alcoholic Beverage Commission, the Comptroller's Office reports that as much as $275,000 in new revenue for the General Revenue Fund would be generated. This is based on fiscal year 2004 ports-of-entry revenue collection data.
Local Government Impact
No significant fiscal implication to units of local government is anticipated.
Source Agencies:
304 Comptroller of Public Accounts, 458 Alcoholic Beverage Commission