| TO: | Honorable Jim Keffer, Chair, House Committee on Ways & Means |
| FROM: | John S. O'Brien, Director, Legislative Budget Board |
| IN RE: | HB3162 by Ortiz, Jr. (Relating to the sales and use tax rate for a fire control, prevention, and emergency medical services district.), As Introduced |
The bill would amend Chapter 344 of the Local Government Code relating to the sales and use tax rate for a fire control, prevention, and emergency medical services district. The bill would allow an adoption of a one-eighth of one percent of sales and use tax for fire control, prevention, and emergency medical services districts to be excluded from the calculation of the two percent cap on combined local sales and use taxes.
According to the Comptroller of Public Accounts, the provisions of the bill would allow a municipality's local sales and use tax, under certain conditions, to exceed the combined local sales and use tax cap of two percent; however, the fiscal impact cannot be estimated because the number of municipalities that would adopt a tax that would exceed the cap is unknown.
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.
According to the Comptroller of Public Accounts, the fiscal impact on units of local government cannot be estimated because the number of municipalities that would adopt a tax that would exceed the cap is unknown.
| Source Agencies: | 304 Comptroller of Public Accounts
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| LBB Staff: | JOB, CT, SD, EB
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