LEGISLATIVE BUDGET BOARD
Austin, Texas
 
FISCAL NOTE, 83RD LEGISLATIVE REGULAR SESSION
 
March 10, 2013

TO:
Honorable Harvey Hilderbran, Chair, House Committee On Ways & Means
 
FROM:
Ursula Parks, Director, Legislative Budget Board
 
IN RE:
HB78 by Simpson (Relating to the exemption from the sales and use tax for certain coins and precious metals.), As Introduced



Estimated Two-year Net Impact to General Revenue Related Funds for HB78, As Introduced: a negative impact of ($424,000) through the biennium ending August 31, 2015, if the bill becomes effective immediately; or a negative impact of ($375,000) through the biennium ending August 31, 2015, if the effective date of the bill is September 1, 2013.



Fiscal Year Probable Net Positive/(Negative) Impact to General Revenue Related Funds
2013 ($16,000)
2014 ($201,000)
2015 ($207,000)
2016 ($213,000)
2017 ($220,000)
2018 ($226,000)




Fiscal Year Probable Net Positive/(Negative) Impact to General Revenue Related Funds
2014 ($168,000)
2015 ($207,000)
2016 ($213,000)
2017 ($220,000)
2018 ($226,000)




Fiscal Year Probable Revenue (Loss) from
General Revenue Fund
1 		Probable Revenue (Loss) from
Cities		 Probable Revenue (Loss) from
Transit Authorities		 Probable Revenue (Loss) from
Counties and Special Districts
2013 ($16,000) ($3,000) ($1,000) $0
2014 ($201,000) ($37,000) ($13,000) ($6,000)
2015 ($207,000) ($38,000) ($13,000) ($6,000)
2016 ($213,000) ($39,000) ($13,000) ($7,000)
2017 ($220,000) ($41,000) ($14,000) ($7,000)
2018 ($226,000) ($42,000) ($14,000) ($7,000)

The above table assumes the bill takes immediate effect and the table below assumes the bill takes effect September 1, 2013.



Fiscal Year Probable Revenue (Loss) from
General Revenue Fund
1 		Probable Revenue (Loss) from
Cities		 Probable Revenue (Loss) from
Transit Authorities		 Probable Revenue (Loss) from
Counties and Special Districts
2014 ($168,000) ($31,000) ($11,000) ($5,000)
2015 ($207,000) ($38,000) ($13,000) ($6,000)
2016 ($213,000) ($39,000) ($13,000) ($7,000)
2017 ($220,000) ($41,000) ($14,000) ($7,000)
2018 ($226,000) ($42,000) ($14,000) ($7,000)

Fiscal Analysis

The bill would amend Chapter 151 of the Tax Code, regarding the sales and use tax.
 
The bill would amend Section 151.336 to remove the limitation of the current exemption of gold, silver, or numismatic coins, or of platinum, gold, or silver bullion, to sales of $1,000 or more.  The effect would be to exempt all sales of the precious metal items, regardless of sales price.
 
The bill would take effect immediately upon enactment, assuming that it received the requisite two-thirds majority votes in both houses of the Legislature.  Otherwise, it would take effect September 1, 2013.

Methodology

Data from the Comptroller's tax files on taxable sales of firms specialized in sales of gold and silver coins and bullion were adjusted to exclude estimated sales of other taxable items sold by such firms, based on a telephone survey of a sample of such firms.  The result was extrapolated through 2018 and adjusted to reflect implementation dates assumed to begin at the start of calendar quarters.  

Local Government Impact

There would be a proportional loss of sales and use tax revenue to local taxing jurisdictions.


Source Agencies:
304 Comptroller of Public Accounts
LBB Staff:
UP, KK, SD