Honorable Dustin Burrows, Chair, House Committee on Ways & Means
FROM:
John McGeady, Assistant Director Sarah Keyton, Assistant Director Legislative Budget Board
IN RE:
HB1707 by Dominguez (Relating to a sales and use tax exemption for certain feminine hygiene products.), As Introduced
Estimated Two-year Net Impact to General Revenue Related Funds for HB1707, As Introduced: a negative impact of ($37,400,000) through the biennium ending August 31, 2021.
Fiscal Year
Probable Net Positive/(Negative) Impact to General Revenue Related Funds
2020
($17,700,000)
2021
($19,700,000)
2022
($20,100,000)
2023
($20,500,000)
2024
($21,000,000)
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 & Special Districts
2020
($17,700,000)
($3,280,000)
($1,130,000)
($660,000)
2021
($19,700,000)
($3,650,000)
($1,250,000)
($740,000)
2022
($20,100,000)
($3,720,000)
($1,280,000)
($750,000)
2023
($20,500,000)
($3,800,000)
($1,300,000)
($770,000)
2024
($21,000,000)
($3,890,000)
($1,340,000)
($790,000)
Fiscal Analysis
The bill would amend Chapter 151 of the Tax Code, to add Section 151.3131, relating to the exemption of certain feminine hygiene products from the sales and use tax.
The new section would define "feminine hygiene products" to include tampons, panty liners, menstrual cups, sanitary napkins, and other similar tangible personal property sold for the principal purpose of feminine hygiene related to the menstrual cycle.
The bill would take effect September 1, 2019.
Methodology
Industry data on national sales of sanitary protection products were apportioned to the state based on female population, reduced to omit estimated non-taxable sales to entities such as nonprofit organizations, multiplied by the sales tax rate to estimate the applicable sales tax, and extrapolated through 2024.
Local Government Impact
There would be a proportional loss of sales and use tax revenue from local taxing jurisdictions.