LEGISLATIVE BUDGET BOARD

Austin, Texas

FISCAL NOTE, 82ND LEGISLATIVE REGULAR SESSION

March 28, 2011

TO:	Honorable Harvey Hilderbran, Chair, House Committee on Ways & Means
FROM:	John S O'Brien, Director, Legislative Budget Board
IN RE:	HB3284 by Guillen (Relating to customs brokers.), As Introduced

Estimated Two-year Net Impact to General Revenue Related Funds for HB3284, As Introduced: a positive impact of $6,300,000 through the biennium ending August 31, 2013.

General Revenue-Related Funds, Five-Year Impact:

Fiscal Year	Probable Net Positive/(Negative) Impact to General Revenue Related Funds
2012	$3,100,000
2013	$3,200,000
2014	$3,200,000
2015	$3,200,000
2016	$3,300,000

All Funds, Five-Year Impact:

Fiscal Year	Probable Revenue Gain from General Revenue Fund 1	Probable Revenue Gain from Cities	Probable Revenue Gain from Transit Authorities
2012	$3,100,000	$200,000	$100,000
2013	$3,200,000	$200,000	$100,000
2014	$3,200,000	$200,000	$100,000
2015	$3,200,000	$200,000	$100,000
2016	$3,300,000	$200,000	$100,000

Fiscal Analysis

The bill would implement recommendations from the report, "Strengthen Sales Tax Enforcement Related to Customs Brokers and Increase the Charge for Export Stamps," in the Legislative Budget Board's (LBB) Government Effectiveness and Efficiency Report submitted to the Eighty-Second Texas Legislature, 2011.

The bill would amend Chapter 151, Tax Code relating to customs brokers.  The bill would eliminate the requirement that the comptroller provide an alternate method to show documentation of exemption of tangible personal property when the website for such documentation is unavailable. The bill would provide that the comptroller may suspend or revoke a customs broker license if the licensee does not comply with statute or issues false documentation.  The bill would provide that a customs broker or authorized employee may issue or deliver documentation only for property that is listed on a single receipt, and that such documentation must include a declaration that the customs broker or authorized employee inspected the property and the original receipt for the property. The bill would increase the charge for each export stamp from $1.60 to $3.20.
 
The bill would take effect September 1, 2011.     

Methodology

The estimated number of export certificates was adjusted to reflect the expected change from the elimination of the ability to combine multiple receipts for refund claims, multiplied by $3.20, and from this the amount of export stamp revenue expected under current law was subtracted to estimate the amount of revenue gain from the increase in the stamp fee. To this was added the gain from the reduction in refund claims associated with single receipts for small purchases that would not warrant refund requests.   The bill would have no administrative cost.

Technology

The bill would have no technological impact.

Local Government Impact

No significant fiscal implication to units counties and special districts.

Source Agencies:

304 Comptroller of Public Accounts

LBB Staff:

JOB, KK, JI, RS