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:HB4417 by Hopson (Relating to the cigars and tobacco products tax.), As Introduced Estimated Two-year Net Impact to General Revenue Related Funds for HB4417, As Introduced: a negative impact of ($6,800,000) through the biennium ending August 31, 2011. The bill will also have a direct impact of a revenue loss to the Property Tax Relief Fund of $23,200,000 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:HB4417 by Hopson (Relating to the cigars and tobacco products tax.), As Introduced
TO: Honorable Rene Oliveira, Chair, House Committee on Ways & Means
FROM: John S. O'Brien, Director, Legislative Budget Board
IN RE: HB4417 by Hopson (Relating to the cigars and tobacco products 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
HB4417 by Hopson (Relating to the cigars and tobacco products tax.), As Introduced
HB4417 by Hopson (Relating to the cigars and tobacco products tax.), As Introduced
Estimated Two-year Net Impact to General Revenue Related Funds for HB4417, As Introduced: a negative impact of ($6,800,000) through the biennium ending August 31, 2011. The bill will also have a direct impact of a revenue loss to the Property Tax Relief Fund of $23,200,000 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.
Estimated Two-year Net Impact to General Revenue Related Funds for HB4417, As Introduced: a negative impact of ($6,800,000) through the biennium ending August 31, 2011. The bill will also have a direct impact of a revenue loss to the Property Tax Relief Fund of $23,200,000 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.
Estimated Two-year Net Impact to General Revenue Related Funds for HB4417, As Introduced: a negative impact of ($6,800,000) through the biennium ending August 31, 2011.
The bill will also have a direct impact of a revenue loss to the Property Tax Relief Fund of $23,200,000 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 ($4,200,000) 2011 ($2,600,000) 2012 ($400,000) 2013 ($181,000) 2014 $0
2010 ($4,200,000)
2011 ($2,600,000)
2012 ($400,000)
2013 ($181,000)
2014 $0
All Funds, Five-Year Impact: Fiscal Year Probable Savings/(Cost) fromGeneral Revenue Fund1 Probable Savings/(Cost) fromProperty Tax Relief Fund304 2010 ($4,200,000) ($10,800,000) 2011 ($2,600,000) ($12,400,000) 2012 ($400,000) ($14,600,000) 2013 ($181,000) ($14,819,000) 2014 $0 ($15,000,000)
Fiscal Year Probable Savings/(Cost) fromGeneral Revenue Fund1 Probable Savings/(Cost) fromProperty Tax Relief Fund304 2010 ($4,200,000) ($10,800,000) 2011 ($2,600,000) ($12,400,000) 2012 ($400,000) ($14,600,000) 2013 ($181,000) ($14,819,000) 2014 $0 ($15,000,000)
2010 ($4,200,000) ($10,800,000)
2011 ($2,600,000) ($12,400,000)
2012 ($400,000) ($14,600,000)
2013 ($181,000) ($14,819,000)
2014 $0 ($15,000,000)
Fiscal Analysis
The bill would amend Chapter 155 of the Tax Code, regarding the taxes on cigars and tobacco products by amending the chapter's definitions. Under the provisions of the bill, the new definition, for an affiliate, would mean a person who controls, is controlled by, or is under common control with another person. The definition for a manufacturer would be amended to add an affiliate, as defined by this bill, as a person to whom a manufacturer could sell tobacco products. The bill would take effect September 1, 2009.
The bill would amend Chapter 155 of the Tax Code, regarding the taxes on cigars and tobacco products by amending the chapter's definitions.
Under the provisions of the bill, the new definition, for an affiliate, would mean a person who controls, is controlled by, or is under common control with another person. The definition for a manufacturer would be amended to add an affiliate, as defined by this bill, as a person to whom a manufacturer could sell tobacco products.
The bill would take effect September 1, 2009.
Methodology
According to the Comptroller of Public Accounts, the bill would eliminate the positive fiscal implications associated with a proposed amendment to Rule 3.121, incorporated into the estimate for the cigar and tobacco products tax in the 2010-11 Biennial Revenue Estimate. The proposed amendment to Rule 3.121, concerning the definitions, imposition of tax permits and reports for the cigar and tobacco products tax would clarify, with regard to the computation of the taxes addressed by the rule and the provisions of Chapter 155 of the Tax Code, the term "manufacturer's list price."
According to the Comptroller of Public Accounts, the bill would eliminate the positive fiscal implications associated with a proposed amendment to Rule 3.121, incorporated into the estimate for the cigar and tobacco products tax in the 2010-11 Biennial Revenue Estimate.
The proposed amendment to Rule 3.121, concerning the definitions, imposition of tax permits and reports for the cigar and tobacco products tax would clarify, with regard to the computation of the taxes addressed by the rule and the provisions of Chapter 155 of the Tax Code, the term "manufacturer's list price."
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