LEGISLATIVE BUDGET BOARD

Austin, Texas

FISCAL NOTE, 81ST LEGISLATIVE REGULAR SESSION

May 2, 2009

TO:	Honorable Rene Oliveira, Chair, House Committee on Ways & Means
FROM:	John S. O'Brien, Director, Legislative Budget Board
IN RE:	HB507 by Brown, Betty (Relating to an exemption from the sales and use tax for certain funding-raising sales conducted by a nonprofit organization that operates to benefit the patients of a state mental hospital.), As Introduced

No significant fiscal implication to the State is anticipated.

The bill would amend Chapter 151 of the Tax Code, regarding the sales tax.

The bill would allow a nonprofit organization that operates to benefit the patients of a state mental hospital to hold a tax-free sale or auction once during each calendar month.

Currently, public service organizations can hold two tax-free sales each year. The bill would grant such organizations operating to benefit a state mental hospital the right to hold twelve tax-free sales each year.

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 September 1, 2009.

Local Government Impact

No significant fiscal implication to units of local government is anticipated.

Source Agencies:

304 Comptroller of Public Accounts

LBB Staff:

JOB, MN, SD, KK