LEGISLATIVE BUDGET BOARD

Austin, Texas

FISCAL NOTE, 83RD LEGISLATIVE REGULAR SESSION

March 28, 2013

TO:	Honorable Harvey Hilderbran, Chair, House Committee on Ways & Means
FROM:	Ursula Parks, Director, Legislative Budget Board
IN RE:	HB1981 by Murphy (Relating to the exclusion of certain amounts from the total revenue of a taxable entity that is a motor carrier for purposes of the franchise tax.), As Introduced

Estimated Two-year Net Impact to General Revenue Related Funds for HB1981, As Introduced: an impact of $0 through the biennium ending August 31, 2015.

Additionally, the bill will have a direct impact of a revenue loss to the Property Tax Relief Fund of ($5,221,000) for the 2014-15 biennium.  Any loss to the Property Tax Relief Fund must be made up with an equal amount of General Revenue to fund the Foundation School Program.

General Revenue-Related Funds, Five-Year Impact:

Fiscal Year	Probable Net Positive/(Negative) Impact to General Revenue Related Funds
2014	$0
2015	$0
2016	$0
2017	$0
2018	$0

All Funds, Five-Year Impact:

Fiscal Year	Probable Revenue (Loss) from Property Tax Relief Fund 304
2014	($2,605,000)
2015	($2,616,000)
2016	($2,665,000)
2017	($2,618,000)
2018	($2,596,000)

Fiscal Analysis

The bill would amend Chapter 171, Tax Code, regarding the franchise tax by adding a provision for an exclusion from total revenue for certain taxable entities.  A taxable entity registered as a motor carrier under Chapter 643, Transportation Code, would be required to exclude from total revenue flow-through revenue derived from taxes and fees.
 
The bill would take effect on January 1, 2014, and apply to franchise tax reports due on or after that date.

Methodology

The fiscal impact is based on data from the Bureau of Transportation Statistics and on the Comptroller's franchise tax data files.

Local Government Impact

No fiscal implication to units of local government is anticipated.

Source Agencies:

304 Comptroller of Public Accounts

LBB Staff:

UP, KK, SD