| TO: | Honorable Rene Oliveira, Chair, House Committee on Ways & Means |
| FROM: | John S. O'Brien, Director, Legislative Budget Board |
| IN RE: | HB3893 by Oliveira (Relating to the rate of the state sales tax on direct broadcast satellite service.), As Introduced |
| Fiscal Year | Probable Net Positive/(Negative) Impact to General Revenue Related Funds |
|---|---|
| 2010 | $90,556,000 |
| 2011 | $113,227,000 |
| 2012 | $118,550,000 |
| 2013 | $123,291,000 |
| 2014 | $128,223,000 |
| Fiscal Year | Probable Revenue Gain from General Revenue Fund 1 |
|---|---|
| 2010 | $90,556,000 |
| 2011 | $113,227,000 |
| 2012 | $118,550,000 |
| 2013 | $123,291,000 |
| 2014 | $128,223,000 |
The bill would amend Chapter 151 of the Tax Code, regarding the sales tax.
"Cable television service," which includes satellite programming services, is currently taxable under the limited sales and use tax. This bill would create a new definition for "direct broadcast satellite service" and exclude that service from the current definition of "cable television service." The bill would include the newly defined direct broadcast satellite service in the list of taxable services and would impose an additional tax of 7 percent of the sales price of this service provided in an incorporated area. This would raise the total state tax rate to 13.25 percent on direct broadcast satellite service in incorporated areas.
The bill would take effect October 1, 2009.
Sales of direct broadcast satellite services in incorporated areas were estimated based on data gathered from Comptroller tax files. Sales were multiplied by the additional tax rate of 7 percent; adjusted for the effective date of October 1, 2009; and extrapolated through fiscal 2014 to determine the revenue gain to the General Revenue Fund.
| Source Agencies: | 304 Comptroller of Public Accounts
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| LBB Staff: | JOB, MN, SD, KK
|