Honorable Jane Nelson, Chair, Senate Committee on Finance
FROM:
Ursula Parks, Director, Legislative Budget Board
IN RE:
SB1076 by Eltife (Relating to mixed beverage taxes; repealing a tax; increasing the rate of a tax.), As Introduced
Estimated Two-year Net Impact to General Revenue Related Funds for SB1076, As Introduced: a negative impact of ($116,711,000) through the biennium ending August 31, 2017.
Fiscal Year
Probable Net Positive/(Negative) Impact to General Revenue Related Funds
2016
($44,928,000)
2017
($71,783,000)
2018
($95,537,000)
2019
($101,116,000)
2020
($106,959,000)
Fiscal Year
Probable Revenue Gain/(Loss) from General Revenue Fund 1
Probable Revenue Gain/(Loss) from Counties
Probable Revenue Gain/(Loss) from Cities
2016
($44,928,000)
($6,046,000)
($5,532,000)
2017
($71,783,000)
($9,660,000)
($8,838,000)
2018
($95,537,000)
($12,857,000)
($11,763,000)
2019
($101,116,000)
($13,608,000)
($12,451,000)
2020
($106,959,000)
($14,394,000)
($13,170,000)
Fiscal Analysis
The bill would amend Chapter 183 of the Tax Code, regarding mixed beverage taxes.
The bill would abolish the mixed beverage gross receipts tax and increase the mixed beverage sales tax rate from the current 8.25 percent to 14 percent. The bill would make conforming changes in Chapter 1504 of the Government Code and Chapters 111 and 151 of the Tax Code.
The bill would repeal the definition of a business day in Section 183.001 of the Tax Code.
The bill would take effect September 1, 2015.
Methodology
This analysis was based on the 2016-17 Biennial Revenue Estimate. The analysis takes into account a one month lag in collections.
The 2016-17 loss to General Revenue represents the net impact of the loss from elimination of the mixed beverage gross receipts tax of ($681,651,000) and the gain from the increase in the sales tax on mixed beverages of $564,940,000.
Because the mixed beverage sales tax is administered under Chapter 151 of the Tax Code, information on payments of the tax by specific taxpayers would be confidential and not subject to open records requests. Payments by specific taxpayers of the mixed beverage gross receipts tax are not confidential.
Local Government Impact
The fiscal implications to counties and cities are shown in the above table.