LEGISLATIVE BUDGET BOARD
Austin, Texas
 
FISCAL NOTE, 81ST LEGISLATIVE REGULAR SESSION
Revision 2
 
May 4, 2009

TO:
Honorable Rene Oliveira, Chair, House Committee on Ways & Means
 
FROM:
John S. O'Brien, Director, Legislative Budget Board
 
IN RE:
HB791 by Burnam (Relating to the period during which certain energy-efficient products are exempt from the sales tax.), Committee Report 1st House, Substituted



Estimated Two-year Net Impact to General Revenue Related Funds for HB791, Committee Report 1st House, Substituted: a negative impact of ($1,548,000) through the biennium ending August 31, 2011, if the effective date of the bill is July 1, 2009; or a negative impact of ($794,000) through the biennium ending August 31, 2011, if the effective date of the bill is October 1, 2009.



Fiscal Year Probable Net Positive/(Negative) Impact to General Revenue Related Funds
2010 ($754,000)
2011 ($794,000)
2012 ($831,000)
2013 ($868,000)
2014 ($906,000)




Fiscal Year Probable Net Positive/(Negative) Impact to General Revenue Related Funds
2010 $0
2011 ($794,000)
2012 ($831,000)
2013 ($868,000)
2014 ($906,000)




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 ($754,000) ($135,000) ($46,000) ($19,000)
2011 ($794,000) ($140,000) ($48,000) ($20,000)
2012 ($831,000) ($148,000) ($50,000) ($21,000)
2013 ($868,000) ($155,000) ($53,000) ($22,000)
2014 ($906,000) ($162,000) ($55,000) ($23,000)

The above table assumes an effective date of July 1, 2009.  The table below assumes an effective date of October 1, 2009



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 $0 $0 $0 $0
2011 ($794,000) ($140,000) ($48,000) ($20,000)
2012 ($831,000) ($148,000) ($50,000) ($21,000)
2013 ($868,000) ($155,000) ($53,000) ($22,000)
2014 ($906,000) ($162,000) ($55,000) ($23,000)

Fiscal Analysis

The bill would amend Chapter 151 of the Tax Code to create an additional period for the exemption from the sales tax for certain energy efficient products. Under current law, these specified products are exempt if purchased during a period around Memorial Day. The bill would also exempt these products from the sales tax if sold on Labor Day.

The bill would take effect July 1, 2009, assuming that it receives the requisite two-thirds majority vote in both houses of the Legislature. Otherwise, it would take effect October 1, 2009.


Methodology

Data on the sale of the eligible energy efficient products were gathered from the U.S. Department of Energy. Sales were adjusted to reflect sales made in Texas, adjusted for the appropriate time period, multiplied by the state sales tax rate, adjusted for potential effective dates of July 1, 2009 and October 1, 2009, and extrapolated through fiscal year 2014.  If the effective date of the bill was October 21, 2009 (after Labor Day), there would be no impact on fiscal year 2010 revenue.


Local Government Impact

There would be a proportional loss of sales tax revenue to units of local government.


Source Agencies:
304 Comptroller of Public Accounts
LBB Staff:
JOB, MN, SD, KK