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:	HB2638 by Smithee (Relating to the exclusion from total revenue in computing the franchise tax of certain funds, reimbursements, and expenses related to certain legal services.), As Introduced

No significant fiscal implication to the State is anticipated.

The bill would amend Section 171.1011(g-3) of the Tax Code relating to the exclusion from total revenue in computing the franchise tax of certain funds, reimbursements, and expenses related to certain legal services.

The bill would repeal Section 171.1011(p)(4-b) of the Tax Code, which currently defines "out of pocket expenses," effective January 1, 2008.

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

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