LEGISLATIVE BUDGET BOARD

Austin, Texas

FISCAL NOTE, 82ND LEGISLATIVE REGULAR SESSION

May 2, 2011

TO:	Honorable Harvey Hilderbran, Chair, House Committee on Ways & Means
FROM:	John S O'Brien, Director, Legislative Budget Board
IN RE:	HB3435 by Raymond (Relating to honesty in state taxation.), As Introduced

No significant fiscal implication to the State is anticipated.

The bill would add Chapter 102, entitled “Honesty in State Taxation”, to the Tax Code.  The bill would define a “regulatory tax” as a fee, levy, surcharge, assessment, penalty, or other charge of any kind imposed by this state for a primary purpose other than to raise revenue for general purposes.

The Texas Legislature and Texas Legislative Council would be directed to not identify a state tax, including a state regulatory tax, as another type of state charge such as a "fee," "surcharge," "assessment," or "penalty" in any new statute or resolution.  They would also be directed to change a reference to a state charge that is not correctly identified as a state tax in the course of otherwise amending the state law containing the reference.

The bill would take effect September 1, 2011.

Local Government Impact

No significant fiscal implication to units of local government is anticipated.

Source Agencies:

116 Sunset Advisory Commission, 304 Comptroller of Public Accounts

LBB Staff:

JOB, KK, SD