LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 81ST LEGISLATIVE REGULAR SESSION April 19, 2009 TO: Honorable Rene Oliveira, Chair, House Committee on Ways & Means FROM: John S. O'Brien, Director, Legislative Budget Board IN RE:HB2762 by Martinez Fischer (Relating to exemptions from the sales tax for certain school supplies.), As Introduced Estimated Two-year Net Impact to General Revenue Related Funds for HB2762, As Introduced: a negative impact of ($228,473,000) through the biennium ending August 31, 2011, if the effective date of the bill is July 1, 2009; or a negative impact of ($202,050,000) through the biennium ending August 31, 2011, if the effective date of the bill is October 1, 2009.
LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 81ST LEGISLATIVE REGULAR SESSION
April 19, 2009
TO: Honorable Rene Oliveira, Chair, House Committee on Ways & Means FROM: John S. O'Brien, Director, Legislative Budget Board IN RE:HB2762 by Martinez Fischer (Relating to exemptions from the sales tax for certain school supplies.), As Introduced
TO: Honorable Rene Oliveira, Chair, House Committee on Ways & Means
FROM: John S. O'Brien, Director, Legislative Budget Board
IN RE: HB2762 by Martinez Fischer (Relating to exemptions from the sales tax for certain school supplies.), 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
HB2762 by Martinez Fischer (Relating to exemptions from the sales tax for certain school supplies.), As Introduced
HB2762 by Martinez Fischer (Relating to exemptions from the sales tax for certain school supplies.), As Introduced
Estimated Two-year Net Impact to General Revenue Related Funds for HB2762, As Introduced: a negative impact of ($228,473,000) through the biennium ending August 31, 2011, if the effective date of the bill is July 1, 2009; or a negative impact of ($202,050,000) through the biennium ending August 31, 2011, if the effective date of the bill is October 1, 2009.
Estimated Two-year Net Impact to General Revenue Related Funds for HB2762, As Introduced: a negative impact of ($228,473,000) through the biennium ending August 31, 2011, if the effective date of the bill is July 1, 2009; or a negative impact of ($202,050,000) through the biennium ending August 31, 2011, if the effective date of the bill is October 1, 2009.
General Revenue-Related Funds, Six-Year Impact: Fiscal Year Probable Net Positive/(Negative) Impact to General Revenue Related Funds 2009 ($8,610,000) 2010 ($108,126,000) 2011 ($111,737,000) 2012 ($115,326,000) 2013 ($118,978,000) 2014 ($122,827,000)
2009 ($8,610,000)
2010 ($108,126,000)
2011 ($111,737,000)
2012 ($115,326,000)
2013 ($118,978,000)
2014 ($122,827,000)
General Revenue-Related Funds, Five-Year Impact: Fiscal Year Probable Net Positive/(Negative) Impact to General Revenue Related Funds 2010 ($90,313,000) 2011 ($111,737,000) 2012 ($115,326,000) 2013 ($118,978,000) 2014 ($122,827,000)
2010 ($90,313,000)
2011 ($111,737,000)
2012 ($115,326,000)
2013 ($118,978,000)
2014 ($122,827,000)
All Funds, Six-Year Impact: Fiscal Year Probable Revenue (Loss) fromGeneral Revenue Fund1 Probable Revenue (Loss) fromCities Probable Revenue (Loss) fromTransit Authorities Probable Revenue (Loss) fromCounties 2009 ($8,610,000) $0 $0 $0 2010 ($108,126,000) ($20,107,000) ($6,856,000) ($2,841,000) 2011 ($111,737,000) ($20,778,000) ($7,084,000) ($2,938,000) 2012 ($115,326,000) ($21,445,000) ($7,314,000) ($3,032,000) 2013 ($118,978,000) ($22,125,000) ($7,544,000) ($3,128,000) 2014 ($122,827,000) ($22,841,000) ($7,788,000) ($3,229,000) The above table assumes an effective date of July 1, 2009. The table below assumes an effective date of October 1, 2009. Fiscal Year Probable Revenue Gain/(Loss) fromGeneral Revenue Fund1 Probable Revenue Gain/(Loss) fromCities Probable Revenue Gain/(Loss) fromTransit Authorities Probable Revenue Gain/(Loss) fromCounties 2010 ($90,313,000) ($15,139,000) ($5,163,000) ($2,140,000) 2011 ($111,737,000) ($20,778,000) ($7,084,000) ($2,938,000) 2012 ($115,326,000) ($21,445,000) ($7,314,000) ($3,032,000) 2013 ($118,978,000) ($22,125,000) ($7,544,000) ($3,128,000) 2014 ($122,827,000) ($22,841,000) ($7,788,000) ($3,229,000) Fiscal Analysis The bill would amend Chapter 151 of the Tax Code to create a sales tax exemption for specified school supplies including backpacks, regardless of when the supplies are purchased. The bill would repeal Section 151.327 of the Tax Code, relating to an existing sales tax exemption for school backpacks before the start of school. The bill would take effect July 1, 2009, assuming that it received the requisite two-thirds majority votes in both houses of the Legislature. Otherwise, it would take effect October 1, 2009. Methodology State sales tax collections from the sale of school supplies were estimated based on national data gathered from the U.S. Bureau of the Census. National sales were adjusted to reflect sales made in Texas; multiplied by the state sales tax rate; adjusted for potential effective dates for the bill of July 1, 2009, and October 1, 2009; and extrapolated through fiscal 2014. Local Government Impact There will be a proportional loss of sales tax revenue to units of local government. Source Agencies:304 Comptroller of Public Accounts LBB Staff: JOB, MN, SD, KK
Fiscal Year Probable Revenue (Loss) fromGeneral Revenue Fund1 Probable Revenue (Loss) fromCities Probable Revenue (Loss) fromTransit Authorities Probable Revenue (Loss) fromCounties 2009 ($8,610,000) $0 $0 $0 2010 ($108,126,000) ($20,107,000) ($6,856,000) ($2,841,000) 2011 ($111,737,000) ($20,778,000) ($7,084,000) ($2,938,000) 2012 ($115,326,000) ($21,445,000) ($7,314,000) ($3,032,000) 2013 ($118,978,000) ($22,125,000) ($7,544,000) ($3,128,000) 2014 ($122,827,000) ($22,841,000) ($7,788,000) ($3,229,000)
2009 ($8,610,000) $0 $0 $0
2010 ($108,126,000) ($20,107,000) ($6,856,000) ($2,841,000)
2011 ($111,737,000) ($20,778,000) ($7,084,000) ($2,938,000)
2012 ($115,326,000) ($21,445,000) ($7,314,000) ($3,032,000)
2013 ($118,978,000) ($22,125,000) ($7,544,000) ($3,128,000)
2014 ($122,827,000) ($22,841,000) ($7,788,000) ($3,229,000)
The above table assumes an effective date of July 1, 2009. The table below assumes an effective date of October 1, 2009.
Fiscal Year Probable Revenue Gain/(Loss) fromGeneral Revenue Fund1 Probable Revenue Gain/(Loss) fromCities Probable Revenue Gain/(Loss) fromTransit Authorities Probable Revenue Gain/(Loss) fromCounties 2010 ($90,313,000) ($15,139,000) ($5,163,000) ($2,140,000) 2011 ($111,737,000) ($20,778,000) ($7,084,000) ($2,938,000) 2012 ($115,326,000) ($21,445,000) ($7,314,000) ($3,032,000) 2013 ($118,978,000) ($22,125,000) ($7,544,000) ($3,128,000) 2014 ($122,827,000) ($22,841,000) ($7,788,000) ($3,229,000) Fiscal Analysis The bill would amend Chapter 151 of the Tax Code to create a sales tax exemption for specified school supplies including backpacks, regardless of when the supplies are purchased. The bill would repeal Section 151.327 of the Tax Code, relating to an existing sales tax exemption for school backpacks before the start of school. The bill would take effect July 1, 2009, assuming that it received the requisite two-thirds majority votes in both houses of the Legislature. Otherwise, it would take effect October 1, 2009. Methodology State sales tax collections from the sale of school supplies were estimated based on national data gathered from the U.S. Bureau of the Census. National sales were adjusted to reflect sales made in Texas; multiplied by the state sales tax rate; adjusted for potential effective dates for the bill of July 1, 2009, and October 1, 2009; and extrapolated through fiscal 2014.
Fiscal Year Probable Revenue Gain/(Loss) fromGeneral Revenue Fund1 Probable Revenue Gain/(Loss) fromCities Probable Revenue Gain/(Loss) fromTransit Authorities Probable Revenue Gain/(Loss) fromCounties 2010 ($90,313,000) ($15,139,000) ($5,163,000) ($2,140,000) 2011 ($111,737,000) ($20,778,000) ($7,084,000) ($2,938,000) 2012 ($115,326,000) ($21,445,000) ($7,314,000) ($3,032,000) 2013 ($118,978,000) ($22,125,000) ($7,544,000) ($3,128,000) 2014 ($122,827,000) ($22,841,000) ($7,788,000) ($3,229,000)
2010 ($90,313,000) ($15,139,000) ($5,163,000) ($2,140,000)
2011 ($111,737,000) ($20,778,000) ($7,084,000) ($2,938,000)
2012 ($115,326,000) ($21,445,000) ($7,314,000) ($3,032,000)
2013 ($118,978,000) ($22,125,000) ($7,544,000) ($3,128,000)
2014 ($122,827,000) ($22,841,000) ($7,788,000) ($3,229,000)
Fiscal Analysis
The bill would amend Chapter 151 of the Tax Code to create a sales tax exemption for specified school supplies including backpacks, regardless of when the supplies are purchased. The bill would repeal Section 151.327 of the Tax Code, relating to an existing sales tax exemption for school backpacks before the start of school. The bill would take effect July 1, 2009, assuming that it received the requisite two-thirds majority votes in both houses of the Legislature. Otherwise, it would take effect October 1, 2009.
The bill would amend Chapter 151 of the Tax Code to create a sales tax exemption for specified school supplies including backpacks, regardless of when the supplies are purchased.
The bill would repeal Section 151.327 of the Tax Code, relating to an existing sales tax exemption for school backpacks before the start of school.
The bill would take effect July 1, 2009, assuming that it received the requisite two-thirds majority votes in both houses of the Legislature. Otherwise, it would take effect October 1, 2009.
Methodology
State sales tax collections from the sale of school supplies were estimated based on national data gathered from the U.S. Bureau of the Census. National sales were adjusted to reflect sales made in Texas; multiplied by the state sales tax rate; adjusted for potential effective dates for the bill of July 1, 2009, and October 1, 2009; and extrapolated through fiscal 2014.
Local Government Impact
There will 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