TO: | Honorable Tommy Williams, Chair, Senate Committee on Finance |
FROM: | Ursula Parks, Director, Legislative Budget Board |
IN RE: | SB1633 by Deuell (Relating to the sales tax treatment of a fundraising sale by a qualified organization.), 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 | ($3,400,000) | ($600,000) | ($200,000) | ($100,000) |
2014 | ($21,300,000) | ($3,900,000) | ($1,300,000) | ($700,000) |
2015 | ($22,300,000) | ($4,100,000) | ($1,400,000) | ($700,000) |
2016 | ($23,300,000) | ($4,300,000) | ($1,500,000) | ($700,000) |
2017 | ($24,300,000) | ($4,500,000) | ($1,500,000) | ($800,000) |
2018 | ($25,400,000) | ($4,700,000) | ($1,600,000) | ($800,000) |
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 |
---|---|---|---|---|
2014 | ($19,500,000) | ($3,600,000) | ($1,200,000) | ($600,000) |
2015 | ($22,300,000) | ($4,100,000) | ($1,400,000) | ($700,000) |
2016 | ($23,300,000) | ($4,300,000) | ($1,500,000) | ($700,000) |
2017 | ($24,300,000) | ($4,500,000) | ($1,500,000) | ($800,000) |
2018 | ($25,400,000) | ($4,700,000) | ($1,600,000) | ($800,000) |
The bill would amend Chapter 151, Tax Code, relating to sales and use taxation of certain fundraising sales.
Section 151.310 would be amended to provide that a qualified organization could make an unlimited number of tax-free fundraising occasional sales, with each occasional fundraiser not to exceed 14 consecutive days, if the organiztion purchases and receives delivery of the item from a wholesale supplier or distributor and resells and delivers the item to a consumer, regardless of the sequence in which the product is marketed, purchased, received, sold and delivered by the organization.
A qualified organization would be an organization that is exempt under Subdivisions (a)(1) or (a)(2) -- religious, educational, or charitable organizations, and organizations exempt from federal tax under Section 501(c)(3), (4), (8), (10), or (19), Internal Revenue Code.
A qualified organization would not be required to hold a sales tax permit in order to claim a resale exemption with respect to items sold in a fundraiser, and would be considered to have purchased an item for resale if the organization receives title for consideration under a contract, purchase order, invoice, shipping document, or other proof. The comptroller could not regard a qualified organization as the agent of the supplier or distributor under Section 151.024 unless the organization is authorized in writing to act as agent.
The bill would take effect immediately if it receives the requisite two-thirds vote of the membership of each house of the legislature, otherwise it would take effect September 1, 2013.
Source Agencies: | 304 Comptroller of Public Accounts
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LBB Staff: | UP, KK, SD
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