LEGISLATIVE BUDGET BOARD
Austin, Texas
 
FISCAL NOTE, 80TH LEGISLATIVE REGULAR SESSION
 
April 2, 2007

TO:
Honorable Jim Keffer, Chair, House Committee on Ways & Means
 
FROM:
John S. O'Brien, Director, Legislative Budget Board
 
IN RE:
HB1284 by Creighton (Relating to the total revenue exemption for the franchise tax.), As Introduced



Estimated Two-year Net Impact to General Revenue Related Funds for HB1284, As Introduced: an impact of $0 through the biennium ending August 31, 2009.



Fiscal Year Probable Net Positive/(Negative) Impact to General Revenue Related Funds
2008 $0
2009 $0
2010 $0
2011 $0
2012 $0




Fiscal Year Probable Revenue Gain/(Loss) from
Property Tax Relief Fund
304
2008 ($72,108,000)
2009 ($74,085,000)
2010 ($78,385,000)
2011 ($82,933,000)
2012 ($86,997,000)

Fiscal Analysis

The bill would amend Chapter 171 of the Tax Code, relating to the franchise tax, to increase the amount of total revenue a taxable entity could have during a reporting period and owe no tax for that period.

The current amount is $300,000 in total revenue. This bill would increase the amount to $600,000 in total revenue.

The bill would take effect January 1, 2008, and it would apply to reports due on or after that date.


Methodology

This fiscal note is based upon analyses provided by the Comptroller's Office.

Their estimate is based on information from the Internal Revenue Service on total receipts received by corporations and partnerships, categorized by receipts size.

Note: House Bill 2, 79th Legislature, Third Called Session (2006) dedicates to the Property Tax Relief Fund 0304 all revenues collected under Chapter 171 in excess of the amount that would have been collected under the chapter as it existed on August 31, 2007. The fiscal impact table reflects that dedication.  The General Revenue Fund will be obliged to compensate for the portion of property tax relief not funded by the revenues in the Property Tax Relief Fund.


Local Government Impact

No fiscal implication to units of local government is anticipated.


Source Agencies:
304 Comptroller of Public Accounts
LBB Staff:
JOB, CT, SD, SM