TO: | Honorable Rene Oliveira, Chair, House Committee on Ways & Means |
FROM: | John S. O'Brien, Director, Legislative Budget Board |
IN RE: | HB424 by Castro (Relating to exemptions from the sales tax for certain school supplies.), As Introduced |
Fiscal Year | Probable Revenue (Loss) from General Revenue Fund 1 |
Probable Revenue (Loss) from Cities |
Probable Revenue (Loss) from Transit Authorities |
Probable Revenue (Loss) from Counties |
---|---|---|---|---|
2009 | ($1,901,000) | $0 | $0 | $0 |
2010 | ($7,190,000) | ($1,337,000) | ($456,000) | ($189,000) |
2011 | ($7,428,000) | ($1,381,000) | ($471,000) | ($195,000) |
2012 | ($7,665,000) | ($1,426,000) | ($486,000) | ($201,000) |
2013 | ($7,906,000) | ($1,470,000) | ($501,000) | ($208,000) |
2014 | ($8,160,000) | ($1,518,000) | ($518,000) | ($214,000) |
Fiscal Year | Probable Revenue (Loss) from General Revenue Fund 1 |
Probable Revenue (Loss) from Cities |
Probable Revenue (Loss) from Transit Authorities |
Probable Revenue (Loss) from Counties |
---|---|---|---|---|
2010 | ($1,966,000) | $0 | $0 | $0 |
2011 | ($7,428,000) | ($1,381,000) | ($471,000) | ($195,000) |
2012 | ($7,665,000) | ($1,426,000) | ($486,000) | ($201,000) |
2013 | ($7,906,000) | ($1,470,000) | ($501,000) | ($208,000) |
2014 | ($8,160,000) | ($1,518,000) | ($518,000) | ($214,000) |
The bill would amend Chapter 151 of the Tax Code, regarding the sales tax.
The bill would exempt certain school supplies from the limited sales and use tax if the items were purchased for use by a student in a public or private elementary or secondary school, had a sales price of less than $100, and were purchased during the three-day sales tax holiday on clothing and footwear each August. A retailer would not have to obtain an exemption certificate except in instances where the quantity purchased would indicate a non-school usage.
The bill would take effect July 1, 2009, assuming that it received the requisite two-thirds majority votes in both houses of the Legislature. Otherwise, it would take effect October 1, 2009.
Data on the sale of school supplies were obtained from the U.S. Bureau of the Census. The data were adjusted for the appropriate price range and time period, multiplied by the state sales tax rate, adjusted for the potential effective dates of July 1, 2009 and October 1, 2009, and extrapolated through fiscal 2014.
Source Agencies: | 304 Comptroller of Public Accounts
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LBB Staff: | JOB, MN, SD, KK
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