LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 81ST LEGISLATIVE REGULAR SESSION April 15, 2009 TO: Honorable Rene Oliveira, Chair, House Committee on Ways & Means FROM: John S. O'Brien, Director, Legislative Budget Board IN RE:HB3835 by Hilderbran (Relating to the exclusion of flow-through funds from total revenue for purposes of the franchise tax.), As Introduced The bill will have a direct impact of a revenue loss to the Property Tax Relief Fund of $900,504,000 for the 2010-11 biennium. Any loss to the Property Tax Relief Fund will have to be made up with General Revenue of the same amount to fund property tax relief.
LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 81ST LEGISLATIVE REGULAR SESSION
April 15, 2009
TO: Honorable Rene Oliveira, Chair, House Committee on Ways & Means FROM: John S. O'Brien, Director, Legislative Budget Board IN RE:HB3835 by Hilderbran (Relating to the exclusion of flow-through funds from total revenue 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: HB3835 by Hilderbran (Relating to the exclusion of flow-through funds from total revenue 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
HB3835 by Hilderbran (Relating to the exclusion of flow-through funds from total revenue for purposes of the franchise tax.), As Introduced
HB3835 by Hilderbran (Relating to the exclusion of flow-through funds from total revenue for purposes of the franchise tax.), As Introduced
The bill will have a direct impact of a revenue loss to the Property Tax Relief Fund of $900,504,000 for the 2010-11 biennium. Any loss to the Property Tax Relief Fund will have to be made up with General Revenue of the same amount to fund property tax relief.
The bill will have a direct impact of a revenue loss to the Property Tax Relief Fund of $900,504,000 for the 2010-11 biennium. Any loss to the Property Tax Relief Fund will have to be made up with General Revenue of the same amount to fund property tax relief.
The bill will have a direct impact of a revenue loss to the Property Tax Relief Fund of $900,504,000 for the 2010-11 biennium. Any loss to the Property Tax Relief Fund will have to be made up with General Revenue of the same amount to fund property tax relief.
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 ($444,692,000) 2011 ($455,812,000) 2012 ($471,770,000) 2013 ($490,646,000) 2014 ($510,277,000)
Fiscal Year Probable Revenue Gain/(Loss) fromProperty Tax Relief Fund304 2010 ($444,692,000) 2011 ($455,812,000) 2012 ($471,770,000) 2013 ($490,646,000) 2014 ($510,277,000)
2010 ($444,692,000)
2011 ($455,812,000)
2012 ($471,770,000)
2013 ($490,646,000)
2014 ($510,277,000)
Fiscal Analysis
The bill would amend Chapter 171 of the Tax Code, regarding the franchise tax, by changing the requirements on taxable entities for excluding from total revenue flow-through funds mandated by contract to be distributed to other entities. Current law in Section 171.1011(g) contains a list of flow-through funds that could be excluded from total revenue. This bill would delete the list and a clause restricting the revenue exclusion to the listed items. The bill would permit taxable entities to exclude from total revenue all flow-through funds mandated by contract to be distributed to other entities. The bill would take effect on January 1, 2010, and apply to reports due on or after that date.
The bill would amend Chapter 171 of the Tax Code, regarding the franchise tax, by changing the requirements on taxable entities for excluding from total revenue flow-through funds mandated by contract to be distributed to other entities.
Current law in Section 171.1011(g) contains a list of flow-through funds that could be excluded from total revenue. This bill would delete the list and a clause restricting the revenue exclusion to the listed items. The bill would permit taxable entities to exclude from total revenue all flow-through funds mandated by contract to be distributed to other entities.
The bill would take effect on January 1, 2010, and apply to reports due on or after that date.
Methodology
Information from the Comptroller's franchise tax files for the 2008 report year was used to estimate the fiscal impact of the bill.
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
JOB, MN, SD