TO: | Honorable Steve Ogden, Chair, Senate Committee on Finance |
FROM: | John S. O'Brien, Director, Legislative Budget Board |
IN RE: | SB865 by Watson (Relating to the sales and use tax on certain pharmaceutical biotechnology cleanrooms and equipment.), 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 Counties |
Probable Revenue Gain/(Loss) from Transit Authorities |
---|---|---|---|---|
2007 | ($404,000) | $0 | $0 | $0 |
2008 | ($5,019,000) | ($964,000) | ($124,000) | ($331,000) |
2009 | ($5,178,000) | ($994,000) | ($128,000) | ($341,000) |
2010 | ($5,333,000) | ($1,024,000) | ($132,000) | ($351,000) |
2011 | ($5,499,000) | ($1,056,000) | ($136,000) | ($362,000) |
2012 | ($5,687,000) | ($1,092,000) | ($141,000) | ($375,000) |
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 Cities |
Probable Revenue Gain/(Loss) from Counties |
Probable Revenue Gain/(Loss) from Transit Authorities |
---|---|---|---|---|
2008 | ($4,601,000) | ($803,000) | ($104,000) | ($276,000) |
2009 | ($5,178,000) | ($994,000) | ($128,000) | ($341,000) |
2010 | ($5,333,000) | ($1,024,000) | ($132,000) | ($351,000) |
2011 | ($5,499,000) | ($1,056,000) | ($136,000) | ($362,000) |
2012 | ($5,687,000) | ($1,092,000) | ($141,000) | ($375,000) |
The bill would amend Chapter 151 of the Tax Code to extend sales tax exemptions for pharmaceutical biotechnology cleanrooms in regards to value and the time period of construction.
The bill would take effect July 1, 2007 if it receives two-thirds majority votes in each house; otherwise, it would take effect September 1, 2007.
The estimate provided by the Comptroller of Public Accounts is based on gathered data from the U.S. Census Bureau for Texas expenditures on equipment used in pharmaceutical biotechnology cleanrooms. 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 September 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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