| TO: | Honorable Jim Keffer, Chair, House Committee on Ways & Means |
| FROM: | John S. O'Brien, Director, Legislative Budget Board |
| IN RE: | HB1015 by Chisum (Relating to the electronic payment of certain taxes and the electronic filing of certain reports.), As Introduced |
| Fiscal Year | Probable Net Positive/(Negative) Impact to General Revenue Related Funds |
|---|---|
| 2008 | $449,000 |
| 2009 | $474,000 |
| 2010 | $474,000 |
| 2011 | $474,000 |
| 2012 | $474,000 |
| Fiscal Year | Probable Revenue Gain/(Loss) from GENERAL REVENUE FUND 1 |
|---|---|
| 2008 | $449,000 |
| 2009 | $474,000 |
| 2010 | $474,000 |
| 2011 | $474,000 |
| 2012 | $474,000 |
The bill would amend Section 111.0625 of the Tax Code to direct the Comptroller to require, by rule, any taxpayer that paid $10,000 or more during the preceding fiscal year in certain tax categories to transfer payments by electronic funds transfer (EFT) if the Comptroller reasonably anticipated that the taxpayer would pay at least that amount during the current fiscal year.
The tax categories covered would include state and local sales and use taxes, direct payment sales taxes, oil and gas severance taxes, insurance premium taxes, gasoline and diesel fuel taxes, hotel occupancy taxes, franchise taxes, mixed beverage gross receipts taxes, motor vehicle rental taxes, and telecommunications infrastructure taxes.
The bill would authorize the Comptroller, by rule, to apply the requirements to a category not listed, or remove the requirements to a category listed if the Comptroller determined that the action was necessary. The Comptroller would have to, by rule, provide for a waiver from the requirements for a taxpayer who could not comply because of hardship, impracticality, or other reason.
The Comptroller, by rule, would specify the types of EFT a taxpayer would have to use to comply with this section.
The bill would amend Section 111.0626 (a) of the Tax Code to direct the Comptroller to require, by rule, a taxpayer required under Section 111.0625 to transfer payments by EFT also file their reports electronically.
The bill would take effect January 1, 2008.
This estimate is based upon analyses provided by the Comptroller's Office.
Annual savings to the General Revenue Fund 0001 would arise from annual gains in interest income attributable to an estimated two-day decrease in cash float, less 25 percent for the waiver provision of the bill. The change to EFT and electronic reporting from paper checks and paper reports would reduce the processing costs by $1.93 per taxpayer, per pay period. The estimate for fiscal 2008 is prorated to account for the January 1, 2008 effective date.
| Source Agencies: | 304 Comptroller of Public Accounts
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| LBB Staff: | JOB, SD, CT
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