LEGISLATIVE BUDGET BOARD

Austin, Texas

FISCAL NOTE, 81ST LEGISLATIVE REGULAR SESSION

April 22, 2009

TO:	Honorable Rene Oliveira, Chair, House Committee on Ways & Means
FROM:	John S. O'Brien, Director, Legislative Budget Board
IN RE:	HB2226 by Parker (Relating to exemptions from the sales tax for certain solar and wind energy devices.), As Introduced

Estimated Two-year Net Impact to General Revenue Related Funds for HB2226, As Introduced: a negative impact of ($583,000) 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	($278,000)
2011	($305,000)
2012	($334,000)
2013	($367,000)
2014	($402,000)

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	($278,000)	($52,000)	($18,000)	($7,000)
2011	($305,000)	($57,000)	($19,000)	($8,000)
2012	($334,000)	($62,000)	($21,000)	($9,000)
2013	($367,000)	($68,000)	($23,000)	($10,000)
2014	($402,000)	($75,000)	($25,000)	($11,000)

Fiscal Analysis

The bill would amend Chapter 151 of the Tax Code relating to exemptions from the sales tax for certain solar and wind energy devices.

The bill would exempt the sale of solar energy or wind energy devices for noncommercial home or personal use from the sales tax if the sales take place during a period beginning on the Saturday preceding the last Monday in May and ending on the last Monday in May.

The bill would take effect September 1, 2009.

Methodology

Sales of solar energy and wind energy devices were estimated based on data gathered from several sources, including the Energy Information Administration.  Sales were adjusted to reflect Texas sales; adjusted for the appropriate time period; multiplied by the state sales tax rate; and extrapolated through 2014.

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