LEGISLATIVE BUDGET BOARD

Austin, Texas

FISCAL NOTE, 81ST LEGISLATIVE REGULAR SESSION

April 19, 2009

TO:	Honorable Rene Oliveira, Chair, House Committee on Ways & Means
FROM:	John S. O'Brien, Director, Legislative Budget Board
IN RE:	HB3030 by Heflin (Relating to an exemption from the sales and use tax for machinery and equipment used in an agricultural aircraft operation.), As Introduced

No significant fiscal implication to the State is anticipated.

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

The bill would include machinery and equipment exclusively used in an agricultural operation to dispense any economic poison; to dispense substances intended for plant nourishment; or engaged in dispensing activities directly affecting agriculture horticulture, fire prevention or containment, or forest preservation in the list of agricultural items that are exempt from the sales and use tax.

The bill would clarify the sales tax exemption for machinery and equipment exclusively used in an agricultural aircraft operation.  The Comptroller indicates the bill would not have a significant fiscal impact on the state or units of local government.

The bill 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