TO: | Honorable Rene Oliveira, Chair, House Committee on Ways & Means |
FROM: | John S. O'Brien, Director, Legislative Budget Board |
IN RE: | HB277 by Zerwas (Relating to the franchise tax and alternative revenue sources and spending priorities for this state.), As Introduced |
Fiscal Year | Probable Net Positive/(Negative) Impact to General Revenue Related Funds |
---|---|
2010 | $0 |
2011 | $0 |
2012 | $0 |
2013 | $0 |
2014 | ($3,025,848,000) |
Fiscal Year | Probable Revenue Gain/(Loss) from General Revenue Fund 1 |
Probable Revenue Gain/(Loss) from Property Tax Relief Fund 304 |
---|---|---|
2010 | $0 | ($18,000,000) |
2011 | $0 | ($87,125,000) |
2012 | $0 | ($90,174,000) |
2013 | $0 | ($93,781,000) |
2014 | ($3,025,848,000) | ($2,006,468,000) |
The bill would amend Chapter 171 of the Tax Code, relating to the amount of total revenue an entity subject to the franchise tax may have for a period and owe no tax. The current amount is $300,000. This bill would raise the amount to $600,000 effective January 1, 2010, and to $1,000,000 effective January 1, 2011.
The bill would require the Comptroller's Office to conduct a comprehensive study that (1) analyzes and compares revenue alternatives to the franchise tax; (2) prioritizes the revenue needs of this state; and (3) identifies potential reductions in state expenditures. The Comptroller would be required to submit a report with the results from the study to the Legislature not later than November 1, 2010, to include specifying one or more revenue alternatives that would effectively meet the state's revenue needs, specific state expenditure reductions, and legislation needed to implement those revenue and expenditure proposals.
The bill would repeal Chapter 171 (franchise tax) of the Tax Code on January 1, 2014.
The bill would take effect September 1, 2009.
Source Agencies: | 304 Comptroller of Public Accounts
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LBB Staff: | JOB, MN, SD, SM
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