LEGISLATIVE BUDGET BOARD
Austin, Texas
 
FISCAL NOTE, 80TH LEGISLATIVE REGULAR SESSION
 
April 18, 2007

TO:
Honorable Jim Keffer, Chair, House Committee on Ways & Means
 
FROM:
John S. O'Brien, Director, Legislative Budget Board
 
IN RE:
HB3159 by Flores (Relating to taxable items for exempt entities.), As Introduced



Estimated Two-year Net Impact to General Revenue Related Funds for HB3159, As Introduced: a negative impact of ($84,591,000) through the biennium ending August 31, 2009, if the effective date of the bill is July 1, 2007; or a negative impact of ($81,390,000) through the biennium ending August 31, 2009, if the effective date of the bill is September 1, 2007.

 

The table below assumes an effective date of July 1, 2007.




Fiscal Year Probable Net Positive/(Negative) Impact to General Revenue Related Funds
2007 ($3,201,000)
2008 ($37,790,000)
2009 ($43,600,000)
2010 ($46,016,000)
2011 ($48,665,000)
2012 ($51,473,000)




Fiscal Year Probable Net Positive/(Negative) Impact to General Revenue Related Funds
2008 ($37,790,000)
2009 ($43,600,000)
2010 ($46,016,000)
2011 ($48,665,000)
2012 ($51,473,000)




Fiscal Year Probable Revenue Gain/(Loss) from
GENERAL REVENUE FUND
1 		Probable Revenue Gain/(Loss) from
TEXAS EMISSIONS REDUCTION PLAN
5071 		Probable Revenue Gain/(Loss) from
City Sales Tax Revenue		 Probable Revenue Gain/(Loss) from
County/SPD Sales Tax Revenue
2007 ($3,201,000) ($268,000) $0 $0
2008 ($37,790,000) ($2,946,000) ($5,937,000) ($766,000)
2009 ($43,600,000) ($3,506,000) ($8,372,000) ($1,080,000)
2010 ($46,016,000) ($3,653,000) ($8,836,000) ($1,140,000)
2011 ($48,665,000) ($317,000) ($9,345,000) ($1,206,000)
2012 ($51,473,000) $0 ($9,884,000) ($1,276,000)

Fiscal Year Probable Revenue Gain/(Loss) from
MTA Sales Tax Revenue
2007 $0
2008 ($2,037,000)
2009 ($2,872,000)
2010 ($3,032,000)
2011 ($3,206,000)
2012 ($3,391,000)

The table below assumes an effective date of September 1, 2007.




Fiscal Year Probable Revenue Gain/(Loss) from
GENERAL REVENUE FUND
1 		Probable Revenue Gain/(Loss) from
TEXAS EMISSIONS REDUCTION PLAN
5071 		Probable Revenue Gain/(Loss) from
City Sales Tax Revenue		 Probable Revenue Gain/(Loss) from
County/SPD Sales Tax Revenue
2008 ($37,790,000) ($2,946,000) ($6,597,000) ($851,000)
2009 ($43,600,000) ($3,506,000) ($8,372,000) ($1,080,000)
2010 ($46,016,000) ($3,653,000) ($8,836,000) ($1,140,000)
2011 ($48,665,000) ($317,000) ($9,345,000) ($1,206,000)
2012 ($51,473,000) $0 ($9,884,000) ($1,276,000)

Fiscal Year Probable Revenue Gain/(Loss) from
MTA Sales Tax Revenue
2008 ($2,263,000)
2009 ($2,872,000)
2010 ($3,032,000)
2011 ($3,206,000)
2012 ($3,391,000)

Fiscal Analysis

The bill would amend Chapter 151 of the Tax Code to expand the sales tax exemption for taxable items used for the improvement of realty of an exempt entity to include machinery and equipment used in the performance of a contract with the Texas Department of Transportation.

The bill would take effect immediately upon enactment if it receives two-thirds vote in each house; otherwise, it would take effect September 1, 2007. 


Methodology

For the purpose of this estimate, the Comptroller of Public Accounts gathered data on Texas expenditures for machinery and equipment used for the improvement of realty of an exempt entity from the U.S. Census Bureau. The Comptroller adjusted the data to reflect machinery and equipment used for a contract with the Texas Department of Transportation and then multiplied it by the state sales tax rate. The estimates were adjusted for potential effective dates of July 1, 2007 and September 1, 2007, and extrapolated through 2012.

The Comptroller proportionally estimated the fiscal impacts on GR Account 5071—Emissions Reduction Plan and units of local government.


Local Government Impact

The fiscal impact to local government is illustrated in the above tables.


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