TO: | Honorable Steve Ogden, Chair, Senate Committee on Finance |
FROM: | John S O'Brien, Director, Legislative Budget Board |
IN RE: | HB268 by Hilderbran (relating to the exemption from sales and use taxes, including the motor vehicle sales and use tax, for timber and certain items used in or on a farm, ranch, timber operation, or agricultural aircraft operation.), Committee Report 2nd House, Substituted |
Fiscal Year | Probable Net Positive/(Negative) Impact to General Revenue Related Funds |
---|---|
2012 | $320,000 |
2013 | $1,074,000 |
2014 | $1,112,000 |
2015 | $1,144,000 |
2016 | $790,000 |
Fiscal Year | Probable Revenue Gain from General Revenue Fund 1 |
Probable Revenue Gain from Cities |
Probable Revenue Gain from Transit Authorities |
Probable Revenue Gain from Counties and Special Districts |
---|---|---|---|---|
2012 | $1,189,000 | $232,000 | $72,000 | $41,000 |
2013 | $1,225,000 | $239,000 | $75,000 | $42,000 |
2014 | $1,263,000 | $246,000 | $77,000 | $43,000 |
2015 | $1,295,000 | $252,000 | $79,000 | $44,000 |
2016 | $1,325,000 | $258,000 | $81,000 | $45,000 |
Fiscal Year | Probable (Cost) from General Revenue Fund 1 |
Change in Number of State Employees from FY 2011 |
---|---|---|
2012 | ($869,000) | 2.0 |
2013 | ($151,000) | 2.0 |
2014 | ($151,000) | 2.0 |
2015 | ($151,000) | 2.0 |
2016 | ($535,000) | 2.0 |
The bill's provisions requiring a registration number when purchasing certain agriculture-related items, and when claiming an exemption, would deter some of the improper uses of exemption certificates identified by Comptroller's Office auditors. Data on the sales of items affected by the provisions of this bill were gathered from public and private sources; adjusted to represent the share of those sales not related to agriculture use, but using an exemption certificate; and extrapolated through 2016.
The administrative cost estimate reflects the funds that would be necessary to hire 2 FTEs and contract for seasonal employees to administer the agricultural exemption program, web development and programming, and security controls.
Source Agencies: | 304 Comptroller of Public Accounts
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LBB Staff: | JOB, KK, SD
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