Honorable Jane Nelson, Chair, Senate Committee on Finance
FROM:
John McGeady, Assistant Director Sarah Keyton, Assistant Director Legislative Budget Board
IN RE:
SB61 by Zaffirini (Relating to a sales and use tax exemption for firearm safety devices and educational materials.), As Introduced
Estimated Two-year Net Impact to General Revenue Related Funds for SB61, As Introduced: a negative impact of ($1,910,000) through the biennium ending August 31, 2021.
Fiscal Year
Probable Net Positive/(Negative) Impact to General Revenue Related Funds
2020
($930,000)
2021
($980,000)
2022
($1,030,000)
2023
($1,080,000)
2024
($1,130,000)
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
2020
($930,000)
($170,000)
($60,000)
($30,000)
2021
($980,000)
($180,000)
($60,000)
($40,000)
2022
($1,030,000)
($190,000)
($70,000)
($40,000)
2023
($1,080,000)
($200,000)
($70,000)
($40,000)
2024
($1,130,000)
($210,000)
($70,000)
($40,000)
Fiscal Analysis
The bill would amend Chapter 151 of the Tax Code by adding Section 151.3131 to provide an exemption of firearm safety supplies from sales and use taxes for a limited period.
The new section would define "firearm safety supplies" to include gun cases, gun safes, firearm safety locks, trigger locks, firearms safety training manuals or electronic publications, and other items designed to ensure the safe handling or storage of a firearm.
The bill would take effect September 1, 2019.
Methodology
Based on information from a sample of firearms dealers, a ratio of sales of firearms safety devices to total sales of firearms dealers was applied to estimated sales of firearms, ammunition, and related accessories in the state, multiplied by the state sales tax rate, and extrapolated through 2024.
Local Government Impact
There would be a proportional loss of sales and use tax revenue from units of local government.