TO: | Honorable David Dewhurst, Lieutenant Governor, Senate |
FROM: | John S. O'Brien, Director, Legislative Budget Board |
IN RE: | SB958 by Hegar (Relating to an exemption from the sales and use tax for machinery and equipment used in an agricultural aircraft operation.), As Passed 2nd House |
Fiscal Year | Probable Net Positive/(Negative) Impact to General Revenue Related Funds |
---|---|
2010 | ($500,000) |
2011 | ($500,000) |
2012 | ($500,000) |
2013 | ($500,000) |
2014 | ($500,000) |
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 | ($500,000) | ($93,000) | ($32,000) | ($13,000) |
2011 | ($500,000) | ($93,000) | ($32,000) | ($13,000) |
2012 | ($500,000) | ($93,000) | ($32,000) | ($13,000) |
2013 | ($500,000) | ($93,000) | ($32,000) | ($13,000) |
2014 | ($500,000) | ($93,000) | ($32,000) | ($13,000) |
The bill would amend Chapter 151 of the Tax Code, regarding certain sales tax exemptions.
The bill would add machinery and equipment exclusively used in an agricultural aircraft operation to the list of agricultural items that are exempt from the sales tax.
The bill would create a sales tax exemption for aircraft sold for use primarily in connection with an agricultural use including predator control; wildlife or livestock capture; wildlife or livestock surveys; census counts of livestock or wildlife; animal or plant health inspection services; or crop dusting, pollination, or seeding.
The bill would take effect September 1, 2009.
The section of the bill regarding the exemption for machinery and equipment used in an agricultural aircraft operation (Section 151.316 of the Tax Code) would codify current Comptroller policy regarding agricultural aircraft. The proposed change would have no fiscal impact.
The section of the bill regarding the exemption for aircraft (Section 151.328 of the Tax Code) is not a clarification of existing law and would broaden the sales tax exemption for aircraft. The revenue loss shown in the table above represents the broadening of this exemption. Sales of aircraft sold primarily for use in relation to certain agricultural or wildlife activities were estimated based on data gathered from Comptroller tax files. Sales were multiplied by the state sales tax rate and extrapolated through fiscal 2014.
Source Agencies: |
LBB Staff: | JOB, MN, KK
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