LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 81ST LEGISLATIVE REGULAR SESSION March 9, 2009 TO: Honorable Mark Strama, Chair, House Committee on Technology, Economic Development & Workforce FROM: John S. O'Brien, Director, Legislative Budget Board IN RE:HB270 by Brown, Fred (Relating to the definition of qualified employee for purposes of the enterprise zone program.), As Introduced Estimated Two-year Net Impact to General Revenue Related Funds for HB270, As Introduced: a negative impact of ($45,818,000) through the biennium ending August 31, 2011.
LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 81ST LEGISLATIVE REGULAR SESSION
March 9, 2009
TO: Honorable Mark Strama, Chair, House Committee on Technology, Economic Development & Workforce FROM: John S. O'Brien, Director, Legislative Budget Board IN RE:HB270 by Brown, Fred (Relating to the definition of qualified employee for purposes of the enterprise zone program.), As Introduced
TO: Honorable Mark Strama, Chair, House Committee on Technology, Economic Development & Workforce
FROM: John S. O'Brien, Director, Legislative Budget Board
IN RE: HB270 by Brown, Fred (Relating to the definition of qualified employee for purposes of the enterprise zone program.), As Introduced
Honorable Mark Strama, Chair, House Committee on Technology, Economic Development & Workforce
Honorable Mark Strama, Chair, House Committee on Technology, Economic Development & Workforce
John S. O'Brien, Director, Legislative Budget Board
John S. O'Brien, Director, Legislative Budget Board
HB270 by Brown, Fred (Relating to the definition of qualified employee for purposes of the enterprise zone program.), As Introduced
HB270 by Brown, Fred (Relating to the definition of qualified employee for purposes of the enterprise zone program.), As Introduced
Estimated Two-year Net Impact to General Revenue Related Funds for HB270, As Introduced: a negative impact of ($45,818,000) through the biennium ending August 31, 2011.
Estimated Two-year Net Impact to General Revenue Related Funds for HB270, As Introduced: a negative impact of ($45,818,000) through the biennium ending August 31, 2011.
Estimated Two-year Net Impact to General Revenue Related Funds
General Revenue-Related Funds, Five-Year Impact: Fiscal Year Probable Net Positive/(Negative) Impact to General Revenue Related Funds 2010 ($22,403,000) 2011 ($23,415,000) 2012 ($24,616,000) 2013 ($25,780,000) 2014 ($26,954,000)
2010 ($22,403,000)
2011 ($23,415,000)
2012 ($24,616,000)
2013 ($25,780,000)
2014 ($26,954,000)
All Funds, Five-Year Impact: Fiscal Year Probable Revenue Gain/(Loss) fromGeneral Revenue Fund1 2010 ($22,403,000) 2011 ($23,415,000) 2012 ($24,616,000) 2013 ($25,780,000) 2014 ($26,954,000)
Fiscal Year Probable Revenue Gain/(Loss) fromGeneral Revenue Fund1 2010 ($22,403,000) 2011 ($23,415,000) 2012 ($24,616,000) 2013 ($25,780,000) 2014 ($26,954,000)
2010 ($22,403,000)
2011 ($23,415,000)
2012 ($24,616,000)
2013 ($25,780,000)
2014 ($26,954,000)
Fiscal Analysis
The bill would amend the definition of qualified employee as it relates to the Enterprise Zone program by removing the requirement that a qualified employee perform at least 50 percent of services for the business at the qualified business site. The bill would allow a qualified business to include all employees, regardless of where they perform their services, in its determination of created and retained jobs for use in calculating the amount of sales tax refund for which the qualified business is eligible under the Enterprise Zone program and the Comptroller of Public Accounts indicates there would be a probable revenue loss of $45,818,000 during the 2010-11 biennium and a probable five year revenue loss of $123,168,000 from General Revenue Fund 001.
The bill would amend the definition of qualified employee as it relates to the Enterprise Zone program by removing the requirement that a qualified employee perform at least 50 percent of services for the business at the qualified business site.
The bill would allow a qualified business to include all employees, regardless of where they perform their services, in its determination of created and retained jobs for use in calculating the amount of sales tax refund for which the qualified business is eligible under the Enterprise Zone program and the Comptroller of Public Accounts indicates there would be a probable revenue loss of $45,818,000 during the 2010-11 biennium and a probable five year revenue loss of $123,168,000 from General Revenue Fund 001.
Methodology
Data on the current number of active enterprise projects were gathered from the Office of the Governor. Data on the current amount of sales tax refunds paid under the Enterprise Zone program were gathered from Comptroller tax files. The number of active projects was multiplied by the maximum $250,000 annual refund of sales tax that a qualified project may claim based on job creation and retention. This amount was subtracted from the current amount of sales tax refunds paid under the Enterprise Zone program to determine the fiscal impact on the General Revenue Fund 0001.
Local Government Impact
No significant fiscal implication to units of local government is anticipated.
Source Agencies: 301 Office of the Governor, 304 Comptroller of Public Accounts
301 Office of the Governor, 304 Comptroller of Public Accounts
LBB Staff: JOB, JRO, MS, BTA
JOB, JRO, MS, BTA