LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 81ST LEGISLATIVE REGULAR SESSION April 22, 2009 TO: Honorable Rene Oliveira, Chair, House Committee on Ways & Means FROM: John S. O'Brien, Director, Legislative Budget Board IN RE:HB238 by Rodriguez (Relating to an exemption from the sales tax for certain renewable energy devices.), As Introduced Estimated Two-year Net Impact to General Revenue Related Funds for HB238, As Introduced: a negative impact of ($5,598,000) through the biennium ending August 31, 2011.
LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 81ST LEGISLATIVE REGULAR SESSION
April 22, 2009
TO: Honorable Rene Oliveira, Chair, House Committee on Ways & Means FROM: John S. O'Brien, Director, Legislative Budget Board IN RE:HB238 by Rodriguez (Relating to an exemption from the sales tax for certain renewable energy devices.), As Introduced
TO: Honorable Rene Oliveira, Chair, House Committee on Ways & Means
FROM: John S. O'Brien, Director, Legislative Budget Board
IN RE: HB238 by Rodriguez (Relating to an exemption from the sales tax for certain renewable energy devices.), 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
HB238 by Rodriguez (Relating to an exemption from the sales tax for certain renewable energy devices.), As Introduced
HB238 by Rodriguez (Relating to an exemption from the sales tax for certain renewable energy devices.), As Introduced
Estimated Two-year Net Impact to General Revenue Related Funds for HB238, As Introduced: a negative impact of ($5,598,000) through the biennium ending August 31, 2011.
Estimated Two-year Net Impact to General Revenue Related Funds for HB238, As Introduced: a negative impact of ($5,598,000) 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 ($2,549,000) 2011 ($3,049,000) 2012 ($3,343,000) 2013 ($3,666,000) 2014 ($4,020,000)
2010 ($2,549,000)
2011 ($3,049,000)
2012 ($3,343,000)
2013 ($3,666,000)
2014 ($4,020,000)
All Funds, Five-Year Impact: Fiscal Year Probable Revenue (Loss) fromGeneral Revenue Fund1 Probable Revenue (Loss) fromCities Probable Revenue (Loss) fromTransit Authorities Probable Revenue (Loss) fromCounties 2010 ($2,549,000) ($431,000) ($147,000) ($61,000) 2011 ($3,049,000) ($567,000) ($193,000) ($80,000) 2012 ($3,343,000) ($622,000) ($212,000) ($88,000) 2013 ($3,666,000) ($682,000) ($232,000) ($96,000) 2014 ($4,020,000) ($748,000) ($255,000) ($106,000)
Fiscal Year Probable Revenue (Loss) fromGeneral Revenue Fund1 Probable Revenue (Loss) fromCities Probable Revenue (Loss) fromTransit Authorities Probable Revenue (Loss) fromCounties 2010 ($2,549,000) ($431,000) ($147,000) ($61,000) 2011 ($3,049,000) ($567,000) ($193,000) ($80,000) 2012 ($3,343,000) ($622,000) ($212,000) ($88,000) 2013 ($3,666,000) ($682,000) ($232,000) ($96,000) 2014 ($4,020,000) ($748,000) ($255,000) ($106,000)
2010 ($2,549,000) ($431,000) ($147,000) ($61,000)
2011 ($3,049,000) ($567,000) ($193,000) ($80,000)
2012 ($3,343,000) ($622,000) ($212,000) ($88,000)
2013 ($3,666,000) ($682,000) ($232,000) ($96,000)
2014 ($4,020,000) ($748,000) ($255,000) ($106,000)
Fiscal Analysis
The bill would amend Chapter 151 of the Tax Code to create a sales tax exemption for "renewable energy devices" installed on a retail customer's side of the meter. Renewable energy devices would mean a device that exclusively uses one or more renewable energy technologies to generate electricity. "Renewable energy technologies" would have the meaning assigned by Section 39.904 of the Utilities Code and would include those that rely on energy derived directly from the sun, on wind, geothermal, hydroelectric, wave, or tidal energy, or on biomass or bio mass-based waste products, including landfill gas. "Retail customer" would mean the separately metered end-use customer who purchases and ultimately consumes electricity. Currently, renewable energy devices purchased to generate electricity for sale are exempt from the state sales and use tax as manufacturing equipment. The bill would take effect September 1, 2009. The exemption would expire August 31, 2017.
The bill would amend Chapter 151 of the Tax Code to create a sales tax exemption for "renewable energy devices" installed on a retail customer's side of the meter.
Renewable energy devices would mean a device that exclusively uses one or more renewable energy technologies to generate electricity. "Renewable energy technologies" would have the meaning assigned by Section 39.904 of the Utilities Code and would include those that rely on energy derived directly from the sun, on wind, geothermal, hydroelectric, wave, or tidal energy, or on biomass or bio mass-based waste products, including landfill gas. "Retail customer" would mean the separately metered end-use customer who purchases and ultimately consumes electricity. Currently, renewable energy devices purchased to generate electricity for sale are exempt from the state sales and use tax as manufacturing equipment.
Methodology
Data on the sale of renewable energy devices were gathered from several sources, including the Energy Information Administration. Sales were adjusted to reflect Texas sales; multiplied by the state sales tax rate; adjusted for the effective date of September 1, 2009; and extrapolated through 2014.
Local Government Impact
There would be a proportional loss of sales tax revenue to units of local government.
Source Agencies: 304 Comptroller of Public Accounts
304 Comptroller of Public Accounts
LBB Staff: JOB, MN, SD, KK
JOB, MN, SD, KK