Honorable John Carona, Chair, Senate Committee on Business & Commerce
FROM:
John S O'Brien, Director, Legislative Budget Board
IN RE:
SB1409 by Lucio (Relating to importation and shipment of alcoholic beverages for personal consumption.), As Introduced
Estimated Two-year Net Impact to General Revenue Related Funds for SB1409, As Introduced: a positive impact of $3,039,718 through the biennium ending August 31, 2013.
Fiscal Year
Probable Net Positive/(Negative) Impact to General Revenue Related Funds
2012
$1,513,484
2013
$1,526,234
2014
$1,526,234
2015
$1,526,234
2016
$1,526,234
Fiscal Year
Probable Revenue Gain from General Revenue Fund 1
Probable Savings/(Cost) from General Revenue Fund 1
2012
$1,526,234
($12,750)
2013
$1,526,234
2014
$1,526,234
2015
$1,526,234
2016
$1,526,234
Fiscal Analysis
The bill would amend the Alcoholic Beverage Code by eliminating the distinction between a Texas resident and a nonresident of Texas as to limits of importations of alcoholic beverages for personal use. It would also increase the administrative fee charged on a container from $.50 to $1.00. This act takes effect on September 1, 2011.The bill would amend Section 107.07 (a) and (e) of the Alcoholic Beverage Code. Subsection (a) eliminates the distinction between a Texas resident and a nonresident of Texas as to limits of importations of alcoholic beverages for personal use. This bill increases the quantity allowed for Texas residents from one quart of distilled spirits to 1 gallon of distilled spirits. Current law allows persons to import alcoholic beverages for personal use without a permit if they pay the excise tax and administrative fee due on the alcoholic beverage. The bill would increase the administrative fee from $.50 per container to $1.00 per container. An increase in importations is expected due to the limit increase and will result in an increase in annual revenue of approximately $1,526,234 per year. The Comptroller of Public Accounts anticipates an increase in annual revenue of approximately $800,000 per year, based on applying the new administrative fee to the amounts in the 2012-13 Biennial Revenue Estimate.
Methodology
The Texas Alcoholic Beverage Commission estimates that allowing Texas residents to import the same amount of distilled spirits as a nonresident of Texas while at the same time increasing the administrative fee to $1.00 will result in a 10% reduction in all containers excluding 750ml, 1 liter, and 1.75 liter size containers of distilled spirits of which a 25% increase in estimated.
The cost to general revenue for FY2012 would be $9,000 for printing new pamphlets and $3,750 for new signs at Ports of Entry locations.
Local Government Impact
No significant fiscal implication to units of local government is anticipated.
Source Agencies:
304 Comptroller of Public Accounts, 458 Alcoholic Beverage Commission