LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 81ST LEGISLATIVE REGULAR SESSION April 26, 2009 TO: Honorable Rene Oliveira, Chair, House Committee on Ways & Means FROM: John S. O'Brien, Director, Legislative Budget Board IN RE:HB450 by Taylor (Relating to exempting certain hurricane preparation supplies from the sales tax for a limited period.), As Introduced Estimated Two-year Net Impact to General Revenue Related Funds for HB450, As Introduced: a negative impact of ($11,275,000) through the biennium ending August 31, 2011.
LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 81ST LEGISLATIVE REGULAR SESSION
April 26, 2009
TO: Honorable Rene Oliveira, Chair, House Committee on Ways & Means FROM: John S. O'Brien, Director, Legislative Budget Board IN RE:HB450 by Taylor (Relating to exempting certain hurricane preparation supplies from the sales tax for a limited period.), As Introduced
TO: Honorable Rene Oliveira, Chair, House Committee on Ways & Means
FROM: John S. O'Brien, Director, Legislative Budget Board
IN RE: HB450 by Taylor (Relating to exempting certain hurricane preparation supplies from the sales tax for a limited period.), 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
HB450 by Taylor (Relating to exempting certain hurricane preparation supplies from the sales tax for a limited period.), As Introduced
HB450 by Taylor (Relating to exempting certain hurricane preparation supplies from the sales tax for a limited period.), As Introduced
Estimated Two-year Net Impact to General Revenue Related Funds for HB450, As Introduced: a negative impact of ($11,275,000) through the biennium ending August 31, 2011.
Estimated Two-year Net Impact to General Revenue Related Funds for HB450, As Introduced: a negative impact of ($11,275,000) 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 ($5,496,000) 2011 ($5,779,000) 2012 ($6,043,000) 2013 ($6,305,000) 2014 ($6,573,000)
2010 ($5,496,000)
2011 ($5,779,000)
2012 ($6,043,000)
2013 ($6,305,000)
2014 ($6,573,000)
All Funds, Five-Year Impact: Fiscal Year Probable Revenue (Loss) fromGeneral Revenue Fund1 Probable Revenue (Loss) fromCities Probable Revenue (Loss) fromTransit Authorities Probable Revenue (Loss) fromCounties 2010 ($5,496,000) ($1,022,000) ($349,000) ($144,000) 2011 ($5,779,000) ($1,075,000) ($367,000) ($152,000) 2012 ($6,043,000) ($1,124,000) ($383,000) ($159,000) 2013 ($6,305,000) ($1,173,000) ($400,000) ($166,000) 2014 ($6,573,000) ($1,222,000) ($417,000) ($173,000)
Fiscal Year Probable Revenue (Loss) fromGeneral Revenue Fund1 Probable Revenue (Loss) fromCities Probable Revenue (Loss) fromTransit Authorities Probable Revenue (Loss) fromCounties 2010 ($5,496,000) ($1,022,000) ($349,000) ($144,000) 2011 ($5,779,000) ($1,075,000) ($367,000) ($152,000) 2012 ($6,043,000) ($1,124,000) ($383,000) ($159,000) 2013 ($6,305,000) ($1,173,000) ($400,000) ($166,000) 2014 ($6,573,000) ($1,222,000) ($417,000) ($173,000)
2010 ($5,496,000) ($1,022,000) ($349,000) ($144,000)
2011 ($5,779,000) ($1,075,000) ($367,000) ($152,000)
2012 ($6,043,000) ($1,124,000) ($383,000) ($159,000)
2013 ($6,305,000) ($1,173,000) ($400,000) ($166,000)
2014 ($6,573,000) ($1,222,000) ($417,000) ($173,000)
Fiscal Analysis
The bill would amend Chapter 151 of the Tax Code to create a sales tax exemption for certain hurricane preparation supplies during a certain period of the year. Under the bill, hurricane preparation supplies would include certain ice packs, self-powered light sources, battery-powered flashlights, certain lanterns, oil-fueled torches, candles, duct tape, manual can opener, first aid kits, radios, tarpaulins, ground anchor systems, bungee cords, ratchet straps, power cords, gasoline fuel tanks, batteries, food storage coolers, water storage containers, cellular telephone batteries and chargers, carbon monoxide detectors, smoke detectors, fire extinguisher, storm shutter devices, and portable generators and power inverters. Each item would be exempt if its sales price did not exceed a specified amount. The bill would exempt hurricane preparation items if purchased during a period beginning on the first Friday in June and ending on the following Sunday. The bill would take effect September 1, 2009.
The bill would amend Chapter 151 of the Tax Code to create a sales tax exemption for certain hurricane preparation supplies during a certain period of the year.
Under the bill, hurricane preparation supplies would include certain ice packs, self-powered light sources, battery-powered flashlights, certain lanterns, oil-fueled torches, candles, duct tape, manual can opener, first aid kits, radios, tarpaulins, ground anchor systems, bungee cords, ratchet straps, power cords, gasoline fuel tanks, batteries, food storage coolers, water storage containers, cellular telephone batteries and chargers, carbon monoxide detectors, smoke detectors, fire extinguisher, storm shutter devices, and portable generators and power inverters. Each item would be exempt if its sales price did not exceed a specified amount.
The bill would exempt hurricane preparation items if purchased during a period beginning on the first Friday in June and ending on the following Sunday.
The bill would take effect September 1, 2009.
Methodology
Data on the sale of the specified hurricane preparation supplies were gathered from a variety of sources including the U.S. Bureau of the Census. Sales were adjusted to reflect Texas; adjusted for the appropriate price range and exemption period; multiplied by the state sales tax rate; and extrapolated through fiscal 2014.
Local Government Impact
There would 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