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:HB3893 by Oliveira (Relating to the rate of the state sales tax on direct broadcast satellite service.), As Introduced Estimated Two-year Net Impact to General Revenue Related Funds for HB3893, As Introduced: a positive impact of $203,783,000 through the biennium ending August 31, 2011.
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:HB3893 by Oliveira (Relating to the rate of the state sales tax on direct broadcast satellite service.), As Introduced
TO: Honorable Rene Oliveira, Chair, House Committee on Ways & Means
FROM: John S. O'Brien, Director, Legislative Budget Board
IN RE: HB3893 by Oliveira (Relating to the rate of the state sales tax on direct broadcast satellite service.), 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
HB3893 by Oliveira (Relating to the rate of the state sales tax on direct broadcast satellite service.), As Introduced
HB3893 by Oliveira (Relating to the rate of the state sales tax on direct broadcast satellite service.), As Introduced
Estimated Two-year Net Impact to General Revenue Related Funds for HB3893, As Introduced: a positive impact of $203,783,000 through the biennium ending August 31, 2011.
Estimated Two-year Net Impact to General Revenue Related Funds for HB3893, As Introduced: a positive impact of $203,783,000 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 $90,556,000 2011 $113,227,000 2012 $118,550,000 2013 $123,291,000 2014 $128,223,000
2010 $90,556,000
2011 $113,227,000
2012 $118,550,000
2013 $123,291,000
2014 $128,223,000
All Funds, Five-Year Impact: Fiscal Year Probable Revenue Gain fromGeneral Revenue Fund1 2010 $90,556,000 2011 $113,227,000 2012 $118,550,000 2013 $123,291,000 2014 $128,223,000
Fiscal Year Probable Revenue Gain fromGeneral Revenue Fund1 2010 $90,556,000 2011 $113,227,000 2012 $118,550,000 2013 $123,291,000 2014 $128,223,000
2010 $90,556,000
2011 $113,227,000
2012 $118,550,000
2013 $123,291,000
2014 $128,223,000
Fiscal Analysis
The bill would amend Chapter 151 of the Tax Code, regarding the sales tax. "Cable television service," which includes satellite programming services, is currently taxable under the limited sales and use tax. This bill would create a new definition for "direct broadcast satellite service" and exclude that service from the current definition of "cable television service." The bill would include the newly defined direct broadcast satellite service in the list of taxable services and would impose an additional tax of 7 percent of the sales price of this service provided in an incorporated area. This would raise the total state tax rate to 13.25 percent on direct broadcast satellite service in incorporated areas. The bill would take effect October 1, 2009.
The bill would amend Chapter 151 of the Tax Code, regarding the sales tax.
"Cable television service," which includes satellite programming services, is currently taxable under the limited sales and use tax. This bill would create a new definition for "direct broadcast satellite service" and exclude that service from the current definition of "cable television service." The bill would include the newly defined direct broadcast satellite service in the list of taxable services and would impose an additional tax of 7 percent of the sales price of this service provided in an incorporated area. This would raise the total state tax rate to 13.25 percent on direct broadcast satellite service in incorporated areas.
The bill would take effect October 1, 2009.
Methodology
Sales of direct broadcast satellite services in incorporated areas were estimated based on data gathered from Comptroller tax files. Sales were multiplied by the additional tax rate of 7 percent; adjusted for the effective date of October 1, 2009; and extrapolated through fiscal 2014 to determine the revenue gain to the General Revenue Fund.
Sales of direct broadcast satellite services in incorporated areas were estimated based on data gathered from Comptroller tax files. Sales were multiplied by the additional tax rate of 7 percent; adjusted for the effective date of October 1, 2009; and extrapolated through fiscal 2014 to determine the revenue gain to the General Revenue Fund.
Local Government Impact
No significant fiscal implication to units of local government is anticipated, because the bill only affects the state sales tax rate.
Source Agencies: 304 Comptroller of Public Accounts
304 Comptroller of Public Accounts
LBB Staff: JOB, MN, SD, KK
JOB, MN, SD, KK