LEGISLATIVE BUDGET BOARD
Austin, Texas
 
FISCAL NOTE, 85TH LEGISLATIVE REGULAR SESSION
 
April 18, 2017

TO:
Honorable Dennis Bonnen, Chair, House Committee on Ways & Means
 
FROM:
Ursula Parks, Director, Legislative Budget Board
 
IN RE:
HB824 by Turner (Relating to an exemption from the sales and use tax for certain lightbulbs for a limited period.), As Introduced



Estimated Two-year Net Impact to General Revenue Related Funds for HB824, As Introduced: a negative impact of ($1,270,000) through the biennium ending August 31, 2019.



Fiscal Year Probable Net Positive/(Negative) Impact to General Revenue Related Funds
2018 $0
2019 ($1,270,000)
2020 ($1,650,000)
2021 ($2,140,000)
2022 ($2,780,000)




Fiscal Year Probable Revenue (Loss) from
General Revenue Fund
1
Probable Revenue (Loss) from
State Highway Fund
6
Probable Revenue (Loss) from
Cities
Probable Revenue (Loss) from
Transit Authorities
2018 $0 ($980,000) ($190,000) ($60,000)
2019 ($1,270,000) $0 ($240,000) ($80,000)
2020 ($1,650,000) $0 ($320,000) ($110,000)
2021 ($2,140,000) $0 ($410,000) ($140,000)
2022 ($2,780,000) $0 ($530,000) ($180,000)

Fiscal Year Probable Revenue (Loss) from
Counties and Special Districts
2018 ($30,000)
2019 ($40,000)
2020 ($60,000)
2021 ($70,000)
2022 ($100,000)

Fiscal Analysis

The bill would amend Section 151.333(b) of the Tax code to add light-emitting diode (LED) lightbulbs to the list of eligible items exempt from the sales and use tax for a limited period.
 
The bill would take effect September 1, 2017.

Methodology

National data on annual shipments of units of LED light bulbs from the U.S. Department of Energy was apportioned to the state based on population, priced based on industry data, reduced to a portion expected to be sold within the exemption period, multiplied by the state sales tax rate, then extrapolated through 2022.

Pursuant to Proposition 7 (2015), any sales tax collections in excess of $28 billion and less than $30.5 billion will be deposited into the State Highway Fund.  Because total 2018 collections are projected to fall in that range, the 2018 revenue loss is from the State Highway Fund instead of General Revenue in the scenario where the bill takes immediate effect.

Local Government Impact

The loss of sales and use tax revenue from units of local government were estimated proportionally.


Source Agencies:
304 Comptroller of Public Accounts
LBB Staff:
UP, KK