LEGISLATIVE BUDGET BOARD
Austin, Texas
 
FISCAL NOTE, 85TH LEGISLATIVE REGULAR SESSION
 
May 8, 2017

TO:
Honorable Dennis Bonnen, Chair, House Committee on Ways & Means
 
FROM:
Ursula Parks, Director, Legislative Budget Board
 
IN RE:
SB1083 by Perry (Relating to the applicability of the sales and use tax to certain insurance services.), As Engrossed

No significant fiscal implication to the State is anticipated.

The bill would amend Chapter 151 of the Tax Code, regarding sales and use taxation of certain insurance services.
 
Section 151.0039 would be amended to exclude from the definition of "insurance service", and thus from taxability, a service performed by a licensed certified public accountancy firm, or on behalf of the firm by an owner or affiliate, if less than one percent of the total revenue of the firm, owner, or affiliate, as applicable, in a calendar year is from services that otherwise constitute insurance service.

The de minimus standard proposed by the bill regarding the portion of a public accountancy firm's revenue that may be from otherwise taxable insurance services is sufficient to ensure that the exemption of such services would not result in significant revenue implications.
 
This bill would take effect January 1, 2018.

Local Government Impact

No significant fiscal implication to units of local government is anticipated.


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