TO: | Honorable Tommy Williams, Chair, Senate Committee on Finance |
FROM: | Ursula Parks, Director, Legislative Budget Board |
IN RE: | SB46 by Zaffirini (Relating to exempting books purchased, used, or consumed by university and college students from the sales and use tax for a limited period.), As Introduced |
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 | ($2,200,000) | $0 | $0 | $0 |
2014 | ($29,600,000) | ($5,500,000) | ($1,900,000) | ($900,000) |
2015 | ($30,500,000) | ($5,600,000) | ($1,900,000) | ($1,000,000) |
2016 | ($31,400,000) | ($5,800,000) | ($2,000,000) | ($1,000,000) |
2017 | ($32,400,000) | ($6,000,000) | ($2,000,000) | ($1,000,000) |
2018 | ($33,400,000) | ($6,200,000) | ($2,100,000) | ($1,000,000) |
Fiscal Year | Probable Revenue Gain/(Loss) from General Revenue Fund 1 |
Probable Revenue Gain/(Loss) from Cities |
Probable Revenue Gain/(Loss) from Transit Authorities |
Probable Revenue Gain/(Loss) from Counties and Special Districts |
---|---|---|---|---|
2014 | ($17,300,000) | ($3,200,000) | ($1,100,000) | ($500,000) |
2015 | ($30,500,000) | ($5,600,000) | ($1,900,000) | ($1,000,000) |
2016 | ($31,400,000) | ($5,800,000) | ($2,000,000) | ($1,000,000) |
2017 | ($32,400,000) | ($6,000,000) | ($2,000,000) | ($1,000,000) |
2018 | ($33,400,000) | ($6,200,000) | ($2,100,000) | ($1,000,000) |
This bill would amend Chapter 151 of the Tax Code, to exempt books from the sales tax when purchased by a student enrolled at a Texas institution of higher education and the sale takes place within a specified 10-day period each January and August.
A person could establish eligibility for the exemption by presenting a valid student identification card. The Comptroller would by rule prescribe electronic means for establishing eligibility for online purchases.
The bill would take effect July 1, 2013, assuming that it received the requisite two-thirds majority votes in both houses of the Legislature. Otherwise, it would take effect October 1, 2013.
Data on higher education enrollment from the Texas Higher Education Coordinating Board, on average annual college student expenditures for required course materials from the National Association of College Stores, and data from college bookstores in Comptroller tax files were used to estimate college textbook expenditures. Estimated book sales were adjusted for the exemption period; multiplied by the sales tax rate; adjusted for potential effective dates for the bill of July 1, 2013, and October 1, 2013; and extrapolated through fiscal 2018. Fiscal implications for units of local government were estimated proportionally.
There would be no impact on local governments in fiscal 2013 because August sales tax collections remitted to the Comptroller are not allocated to the local jurisdictions until the next fiscal year.
Source Agencies: | 304 Comptroller of Public Accounts
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LBB Staff: | UP, KK, SD
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