LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 81ST LEGISLATIVE REGULAR SESSION April 6, 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. ), Committee Report 1st House, Substituted Estimated Two-year Net Impact to General Revenue Related Funds for HB270, Committee Report 1st House, Substituted: a negative impact of ($1,600,000) through the biennium ending August 31, 2011.
LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 81ST LEGISLATIVE REGULAR SESSION
April 6, 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. ), Committee Report 1st House, Substituted
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. ), Committee Report 1st House, Substituted
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. ), Committee Report 1st House, Substituted
HB270 by Brown, Fred (Relating to the definition of qualified employee for purposes of the enterprise zone program. ), Committee Report 1st House, Substituted
Estimated Two-year Net Impact to General Revenue Related Funds for HB270, Committee Report 1st House, Substituted: a negative impact of ($1,600,000) through the biennium ending August 31, 2011.
Estimated Two-year Net Impact to General Revenue Related Funds for HB270, Committee Report 1st House, Substituted: a negative impact of ($1,600,000) 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 ($800,000) 2011 ($800,000) 2012 ($800,000) 2013 ($800,000) 2014 ($800,000)
2010 ($800,000)
2011 ($800,000)
2012 ($800,000)
2013 ($800,000)
2014 ($800,000)
All Funds, Five-Year Impact: Fiscal Year Probable Revenue Gain/(Loss) fromGeneral Revenue Fund1 2010 ($800,000) 2011 ($800,000) 2012 ($800,000) 2013 ($800,000) 2014 ($800,000)
Fiscal Year Probable Revenue Gain/(Loss) fromGeneral Revenue Fund1 2010 ($800,000) 2011 ($800,000) 2012 ($800,000) 2013 ($800,000) 2014 ($800,000)
2010 ($800,000)
2011 ($800,000)
2012 ($800,000)
2013 ($800,000)
2014 ($800,000)
Fiscal Analysis
The bill would amend Chapter 2303 of the Government Code to amend the definition of "qualified employee" as it relates to the Enterprise Zone program. The bill would expand the definition to include a person who works for a qualified business and resides within the enterprise zone; or performs at least 50 percent of the person's service for the business at the qualified business site. The bill would take effect September 1, 2009.
The bill would amend Chapter 2303 of the Government Code to amend the definition of "qualified employee" as it relates to the Enterprise Zone program. The bill would expand the definition to include a person who works for a qualified business and resides within the enterprise zone; or performs at least 50 percent of the person's service for the business at the qualified business site.
The bill would take effect September 1, 2009.
Methodology
Data on the current number of jobs considered for job creation and retention under the Enterprise Zone program were gathered from the Governor's Office. Data on the current amount of sales tax refunds made to Enterprise Zone projects were gathered from Comptroller tax files. The amount of refunds was divided by the number of jobs to determine an average refund per job. This analysis assumes that the number of created and retained jobs used in the calculation of sales tax refunds for enterprise projects would increase by five percent due to the expanded definition of "qualified employee." The increase in the number of jobs was multiplied by the current average refund per job to determine the fiscal impact to General Revenue Fund 0001.
Data on the current number of jobs considered for job creation and retention under the Enterprise Zone program were gathered from the Governor's Office. Data on the current amount of sales tax refunds made to Enterprise Zone projects were gathered from Comptroller tax files. The amount of refunds was divided by the number of jobs to determine an average refund per job.
This analysis assumes that the number of created and retained jobs used in the calculation of sales tax refunds for enterprise projects would increase by five percent due to the expanded definition of "qualified employee." The increase in the number of jobs was multiplied by the current average refund per job to determine the fiscal impact to General Revenue Fund 0001.
Local Government Impact
No significant fiscal implication to units of local government is anticipated.
Source Agencies: 304 Comptroller of Public Accounts
304 Comptroller of Public Accounts
LBB Staff: JOB, JRO, SD, MN
JOB, JRO, SD, MN