LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 81ST LEGISLATIVE REGULAR SESSION March 16, 2009 TO: Honorable Rene Oliveira, Chair, House Committee on Ways & Means FROM: John S. O'Brien, Director, Legislative Budget Board IN RE:HB1006 by Truitt (Relating to the exclusion of certain amounts from the total revenue of property owners' associations for purposes of the franchise tax.), As Introduced Estimated Two-year Net Impact to General Revenue Related Funds for HB1006, As Introduced: an impact of $0 through the biennium ending August 31, 2011.
LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 81ST LEGISLATIVE REGULAR SESSION
March 16, 2009
TO: Honorable Rene Oliveira, Chair, House Committee on Ways & Means FROM: John S. O'Brien, Director, Legislative Budget Board IN RE:HB1006 by Truitt (Relating to the exclusion of certain amounts from the total revenue of property owners' associations for purposes of the franchise tax.), As Introduced
TO: Honorable Rene Oliveira, Chair, House Committee on Ways & Means
FROM: John S. O'Brien, Director, Legislative Budget Board
IN RE: HB1006 by Truitt (Relating to the exclusion of certain amounts from the total revenue of property owners' associations for purposes of the franchise tax.), As Introduced
Honorable Rene Oliveira, Chair, House Committee on Ways & Means
Honorable Rene Oliveira, Chair, House Committee on Ways & Means
John S. O'Brien, Director, Legislative Budget Board
John S. O'Brien, Director, Legislative Budget Board
HB1006 by Truitt (Relating to the exclusion of certain amounts from the total revenue of property owners' associations for purposes of the franchise tax.), As Introduced
HB1006 by Truitt (Relating to the exclusion of certain amounts from the total revenue of property owners' associations for purposes of the franchise tax.), As Introduced
Estimated Two-year Net Impact to General Revenue Related Funds for HB1006, As Introduced: an impact of $0 through the biennium ending August 31, 2011.
Estimated Two-year Net Impact to General Revenue Related Funds for HB1006, As Introduced: an impact of $0 through the biennium ending August 31, 2011.
General Revenue-Related Funds, Five-Year Impact: Fiscal Year Probable Net Positive/(Negative) Impact to General Revenue Related Funds 2010 $0 2011 $0 2012 $0 2013 $0 2014 $0
2010 $0
2011 $0
2012 $0
2013 $0
2014 $0
All Funds, Five-Year Impact: Fiscal Year Probable Revenue Gain/(Loss) fromProperty Tax Relief Fund304 2010 ($100,000) 2011 ($103,000) 2012 ($106,000) 2013 ($110,000) 2014 ($115,000)
Fiscal Year Probable Revenue Gain/(Loss) fromProperty Tax Relief Fund304 2010 ($100,000) 2011 ($103,000) 2012 ($106,000) 2013 ($110,000) 2014 ($115,000)
2010 ($100,000)
2011 ($103,000)
2012 ($106,000)
2013 ($110,000)
2014 ($115,000)
Fiscal Analysis
The bill would amend Chapter 171 of the Tax Code, relating to the franchise tax. The bill would provide that a taxable entity that is a property owners' association, as defined in the Property Code, shall exclude from total revenue the assessments received by the association and used for the benefit of the residential subdivision. The bill would take effect on January 1, 2010, and apply to franchise tax reports due on or after that data.
The bill would amend Chapter 171 of the Tax Code, relating to the franchise tax.
The bill would provide that a taxable entity that is a property owners' association, as defined in the Property Code, shall exclude from total revenue the assessments received by the association and used for the benefit of the residential subdivision.
The bill would take effect on January 1, 2010, and apply to franchise tax reports due on or after that data.
Methodology
Data from 2008 franchise tax reports were used to determine the amount of tax remitted by taxable entities that were property owner's associations. The exclusion of assessments from total revenue was assumed to eliminate all tax liability for the affected taxable entities.
Local Government Impact
No fiscal implication to units of local government is anticipated.
Source Agencies: 304 Comptroller of Public Accounts
304 Comptroller of Public Accounts
LBB Staff: JOB, MN, SD, SM
JOB, MN, SD, SM