LEGISLATIVE BUDGET BOARD

Austin, Texas

FISCAL NOTE, 81ST LEGISLATIVE REGULAR SESSION

April 5, 2009

TO:	Honorable Rene Oliveira, Chair, House Committee on Ways & Means
FROM:	John S. O'Brien, Director, Legislative Budget Board
IN RE:	HB1591 by Hamilton (Relating to exempting sales of certain hurricane preparation supplies in certain counties from the sales tax for a limited period.), As Introduced

Estimated Two-year Net Impact to General Revenue Related Funds for HB1591, As Introduced: a negative impact of ($11,492,000) through the biennium ending August 31, 2011.

General Revenue-Related Funds, Five-Year Impact:

Fiscal Year	Probable Net Positive/(Negative) Impact to General Revenue Related Funds
2010	($5,602,000)
2011	($5,890,000)
2012	($6,159,000)
2013	($6,425,000)
2014	($6,698,000)

All Funds, Five-Year Impact:

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	($5,602,000)	($1,042,000)	($355,000)	($147,000)
2011	($5,890,000)	($1,095,000)	($374,000)	($155,000)
2012	($6,159,000)	($1,145,000)	($391,000)	($162,000)
2013	($6,425,000)	($1,195,000)	($407,000)	($169,000)
2014	($6,698,000)	($1,246,000)	($425,000)	($176,000)

Fiscal Analysis

The bill would amend Chapter 151 of the Tax Code to create a sales tax exemption for certain hurricane preparation supplies, if purchased during a period beginning on May 21 and ending on June 1 of each year.

Under the bill, hurricane preparation supplies would include certain ice packs, self-powered light sources, radios, tarpaulins, ground anchor systems, gasoline fuel tanks, batteries, food storage coolers, cellular telephone batteries and chargers, carbon monoxide detectors, storm shutter devices, and portable generators. Each item would be exempt if its sales price did not exceed a specified amount.

The bill would take effect September 1, 2009.

Methodology

Data on the sale of the specified hurricane preparation supplies were gathered from a variety of sources including the U.S. Bureau of the Census.  Sales were adjusted to reflect Texas; adjusted for the appropriate price range and exemption period; multiplied by the state sales tax rate; and extrapolated through fiscal 2014.

Local Government Impact

The fiscal impact on units of local government was estimated proportionally.

Source Agencies:

304 Comptroller of Public Accounts

LBB Staff:

JOB, MN, SD, KK