LEGISLATIVE BUDGET BOARD
Austin, Texas
 
FISCAL NOTE, 82ND LEGISLATIVE REGULAR SESSION
 
March 14, 2011

TO:
Honorable John Carona, Chair, Senate Committee on Business & Commerce
 
FROM:
John S O'Brien, Director, Legislative Budget Board
 
IN RE:
SB576 by Eltife (Relating to reports filed with the comptroller regarding certain alcoholic beverage sales.), As Introduced



Estimated Two-year Net Impact to General Revenue Related Funds for SB576, As Introduced: a positive impact of $4,388,000 through the biennium ending August 31, 2013.



Fiscal Year Probable Net Positive/(Negative) Impact to General Revenue Related Funds
2012 $1,200,000
2013 $3,188,000
2014 $4,974,000
2015 $5,173,000
2016 $5,380,000




Fiscal Year Probable Revenue Gain/(Loss) from
General Revenue Fund
1
Probable Revenue Gain/(Loss) from
Counties
Probable Revenue Gain/(Loss) from
Cities
2012 $1,200,000 $162,000 $150,000
2013 $3,188,000 $430,000 $398,000
2014 $4,974,000 $670,000 $620,000
2015 $5,173,000 $697,000 $645,000
2016 $5,380,000 $725,000 $671,000

Fiscal Analysis

The bill would amend Section 151.433 of the Tax Code, regarding reports by wholesalers and distributors of beer, wine and malt liquor.
 
The bill would expand the list of persons required by the Comptroller's Office to file a monthly report on alcoholic beverage sales made to retailers to include a person holding a package store permit who also holds a local distributorís permit.
 
The bill would require wholesalers and distributors in their monthly reports for alcoholic beverage sales to retailers to also provide information on the size and brand of the products sold, and would require wholesalers and distributors of distilled spirits (i.e. liquor) to provide these monthly reports.
 
The bill would expand the definition of a ďretailerĒ for purposes of this section to include the holder of a temporary and special wine and beer retailerís permit; a mixed beverage permit; a daily temporary mixed beverage permit; and a private club registration permit.
 
The bill would amend Chapter 111 of the Tax Code, regarding collection procedures for state taxes, to require the Comptrollerís Office to disclose information from the sales reports required under Section 151.462 of this Code (as amended by this bill).
 
This bill would take effect September 1, 2011.

Methodology

The Comptroller of Public Accounts (CPA) estimates the bill's provisions would increase collections from the mixed beverage tax due to an increase in the effectiveness of the audit selection process. Gains would be reflected in both revenue realized per audit and an increase in the percentage of mixed beverage audits yielding revenue. Additionally, in response to enhanced reporting requirements, there would be a revenue gain due to greater voluntary tax compliance.


Local Government Impact

Cities and counties could expect positive revenue gains. This analysis shows the estimated gains to
cities and counties if they were to be appropriated their current share of total mixed beverage revenue.


Source Agencies:
304 Comptroller of Public Accounts, 458 Alcoholic Beverage Commission
LBB Staff:
JOB, AG