TO: | Honorable Jim Keffer, Chair, House Committee on Ways & Means |
FROM: | John S. O'Brien, Director, Legislative Budget Board |
IN RE: | HB2593 by Bonnen (Relating to the sales tax on computer program services.), As Introduced |
The table below assumes an effective date of July 1, 2007.
Fiscal Year | Probable Revenue Gain/(Loss) from GENERAL REVENUE FUND 1 |
Probable Revenue Gain/(Loss) from Cities |
Probable Revenue Gain/(Loss) from Transit Authorities |
Probable Revenue Gain/(Loss) from Counties |
---|---|---|---|---|
2007 | ($6,717,000) | $0 | $0 | $0 |
2008 | ($87,462,000) | ($16,794,000) | ($5,762,000) | ($2,167,000) |
2009 | ($95,326,000) | ($18,304,000) | ($6,280,000) | ($2,362,000) |
2010 | ($103,359,000) | ($19,847,000) | ($6,809,000) | ($2,561,000) |
2011 | ($112,296,000) | ($21,563,000) | ($7,398,000) | ($2,783,000) |
2012 | ($120,513,000) | ($23,141,000) | ($7,939,000) | ($2,986,000) |
The table below assumes an effective date of October 1, 2007.
Fiscal Year | Probable Revenue Gain/(Loss) from GENERAL REVENUE FUND 1 |
Probable Revenue Gain/(Loss) from Cities |
Probable Revenue Gain/(Loss) from Transit Authorities |
Probable Revenue Gain/(Loss) from Counties |
---|---|---|---|---|
2008 | ($72,885,000) | ($12,596,000) | ($4,322,000) | ($1,625,000) |
2009 | ($95,326,000) | ($18,304,000) | ($6,280,000) | ($2,362,000) |
2010 | ($103,359,000) | ($19,847,000) | ($6,809,000) | ($2,561,000) |
2011 | ($112,296,000) | ($21,563,000) | ($7,398,000) | ($2,783,000) |
2012 | ($120,513,000) | ($23,141,000) | ($7,939,000) | ($2,986,000) |
The bill would amend Chapter 151 of the Tax Code to exclude all repair and maintenance services for computer programs from the sales tax. Under current law, repair and maintenance services performed on a computer program by a person who sold the program are a taxable service; however, repair and maintenance services performed on a program by a person who did not sell the program are not taxable. The provisions of the bill would extend the exclusion to all repair and maintenance services for computer programs.
The bill would take effect July 1, 2007 if it receives two-thirds majority votes in each house; otherwise, it would take effect October 1, 2007.The estimate provided by the Comptroller of Public Accounts is based on gathered data on the taxable sale of repair and maintenance services for computer programs from Comptroller tax files. For the purpose of this analysis, the Comptroller multiplied the data by the state sales tax rate, adjusted for the potential effective dates of July 1, 2007 and October 1, 2007, and extrapolated through fiscal 2012.
The Comptroller proportionally estimated the fiscal impacts on units of local government.
Source Agencies: | 304 Comptroller of Public Accounts
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LBB Staff: | JOB, CT, SD, EB
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