TO: | Honorable Harvey Hilderbran, Chair, House Committee on Ways & Means |
FROM: | Ursula Parks, Director, Legislative Budget Board |
IN RE: | HB3742 by Lavender (To repeal certain state sales, use, excise, franchise, severance, production, occupations, gross receipts and inheritance taxes, to repeal or limit certain local sales, use, excise and ad valorem property taxes, to enact a statewide and local value added tax, and to reform school finance and administration; providing penalties.), As Introduced |
Fiscal Year | Probable Net Positive/(Negative) Impact to General Revenue Related Funds |
---|---|
2014 | ($39,465,916,000) |
2015 | ($41,921,523,000) |
2016 | ($41,921,523,000) |
2017 | ($41,921,523,000) |
2018 | ($41,921,523,000) |
Fiscal Year | Probable Revenue (Loss) from General Revenue Fund 1 |
Probable Revenue (Loss) from All Other Non-GR Related Funds |
Probable Revenue (Loss) from Local Property Taxes |
Probable Revenue (Loss) from Local Sales Taxes and other Non-Property Taxes |
---|---|---|---|---|
2014 | ($39,465,916,000) | ($5,666,696,000) | $0 | ($7,209,059,000) |
2015 | ($41,921,523,000) | ($5,419,700,000) | ($47,427,748,000) | ($7,499,827,000) |
2016 | ($41,921,523,000) | ($5,419,700,000) | ($49,671,789,000) | ($7,793,507,000) |
2017 | ($41,921,523,000) | ($5,419,700,000) | ($52,145,657,000) | ($8,098,933,000) |
2018 | ($41,921,523,000) | ($5,419,700,000) | ($54,741,588,000) | ($8,416,577,000) |
The bill would make substantial modification to the state and local tax system. The bill would be entitled the "Texas Tax Reform Act of 2013".
Article 1 of the bill would repeal the state sales and use tax, the motor vehicle sales and rental taxes, the cigarette tax, the cigar and tobacco product tax, the hotel occupancy tax, the manufactured housing sales tax, the controlled substances tax, the boat and boat motor sales tax, the fireworks tax, the motor fuels taxes, the franchise tax, the cement production tax, all miscellaneous gross receipts taxes, the mixed beverage tax, all business permit taxes, the natural gas production tax, the oil production tax, the sulphur production tax, and the inheritance tax effective on September 1, 2013.
Article 2 - 4 of the bill would impose a state Value Added Tax at the rate of 7 percent and allow local taxing entities to impose a local option municipal Value Added Tax of up 3 percent.
Article 5 of the bill would bar the state and most political subdivisions of the state from levying property taxes.
Article 6 of the bill would make various amendments to the Education Code regarding the school finance system.
Source Agencies: | 304 Comptroller of Public Accounts
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LBB Staff: | UP, KK, SD
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