TO: | Honorable Harvey Hilderbran, Chair, House Committee on Ways & Means |
FROM: | John S O'Brien, Director, Legislative Budget Board |
IN RE: | HB658 by Villarreal (Relating to the repeal of state sales tax and franchise tax refunds for certain ad valorem tax payers.), As Introduced |
Fiscal Year | Probable Net Positive/(Negative) Impact to General Revenue Related Funds |
---|---|
2012 | $0 |
2013 | $0 |
2014 | $6,714,000 |
2015 | $6,714,000 |
2016 | $6,714,000 |
Fiscal Year | Probable Revenue Gain/(Loss) from General Revenue Fund 1 |
Probable Revenue Gain/(Loss) from Property Tax Relief Fund 304 |
---|---|---|
2012 | $0 | $0 |
2013 | $0 | $0 |
2014 | $6,714,000 | $3,286,000 |
2015 | $6,714,000 | $3,286,000 |
2016 | $6,714,000 | $3,286,000 |
This bill would repeal the Economic Development Refund Program. The Legislative Budget Board's Government Effectiveness & Efficiency Report to the Eighty-Second Legislature titled, "Phase Out Economic Development Tax Refunds" makes a similar recommendation.
This bill would repeal Subchapter F of Chapter 111 of the Tax Code, regarding tax refunds for certain ad valorem taxpayers in reinvestment zones. Subchapter F, proposed for repeal, currently provides a refund of sales and use and franchise tax payments made by certain persons who paid ad valorem taxes to a school district on property in a reinvestment zone that is subject to an abatement agreement with a city or county and is not subject to an abatement agreement or an agreement to limit the appraised value of property with the school district. To be eligible for the refund, the person and person's business must meet certain conditions. The total amount that can be refunded to all eligible persons is capped at $10 million in any year. The bill would take effect January 1, 2012.
Source Agencies: | 304 Comptroller of Public Accounts
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LBB Staff: | JOB, KK, JI, JJ
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