LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 81ST LEGISLATIVE REGULAR SESSION Revision 2 May 4, 2009 TO: Honorable Rene Oliveira, Chair, House Committee on Ways & Means FROM: John S. O'Brien, Director, Legislative Budget Board IN RE:HB791 by Burnam (Relating to the period during which certain energy-efficient products are exempt from the sales tax.), Committee Report 1st House, Substituted Estimated Two-year Net Impact to General Revenue Related Funds for HB791, Committee Report 1st House, Substituted: a negative impact of ($1,548,000) through the biennium ending August 31, 2011, if the effective date of the bill is July 1, 2009; or a negative impact of ($794,000) 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
Revision 2
May 4, 2009
Revision 2
Revision 2
TO: Honorable Rene Oliveira, Chair, House Committee on Ways & Means FROM: John S. O'Brien, Director, Legislative Budget Board IN RE:HB791 by Burnam (Relating to the period during which certain energy-efficient products are exempt from the sales tax.), Committee Report 1st House, Substituted
TO: Honorable Rene Oliveira, Chair, House Committee on Ways & Means
FROM: John S. O'Brien, Director, Legislative Budget Board
IN RE: HB791 by Burnam (Relating to the period during which certain energy-efficient products are exempt from the sales tax.), Committee Report 1st House, Substituted
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
HB791 by Burnam (Relating to the period during which certain energy-efficient products are exempt from the sales tax.), Committee Report 1st House, Substituted
HB791 by Burnam (Relating to the period during which certain energy-efficient products are exempt from the sales tax.), Committee Report 1st House, Substituted
Estimated Two-year Net Impact to General Revenue Related Funds for HB791, Committee Report 1st House, Substituted: a negative impact of ($1,548,000) through the biennium ending August 31, 2011, if the effective date of the bill is July 1, 2009; or a negative impact of ($794,000) 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 HB791, Committee Report 1st House, Substituted: a negative impact of ($1,548,000) through the biennium ending August 31, 2011, if the effective date of the bill is July 1, 2009; or a negative impact of ($794,000) through the biennium ending August 31, 2011, if the effective date of the bill is October 1, 2009.
General Revenue-Related Funds, Five-Year Impact: Fiscal Year Probable Net Positive/(Negative) Impact to General Revenue Related Funds 2010 ($754,000) 2011 ($794,000) 2012 ($831,000) 2013 ($868,000) 2014 ($906,000)
2010 ($754,000)
2011 ($794,000)
2012 ($831,000)
2013 ($868,000)
2014 ($906,000)
General Revenue-Related Funds, Five-Year Impact: Fiscal Year Probable Net Positive/(Negative) Impact to General Revenue Related Funds 2010 $0 2011 ($794,000) 2012 ($831,000) 2013 ($868,000) 2014 ($906,000)
2010 $0
2011 ($794,000)
2012 ($831,000)
2013 ($868,000)
2014 ($906,000)
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 ($754,000) ($135,000) ($46,000) ($19,000) 2011 ($794,000) ($140,000) ($48,000) ($20,000) 2012 ($831,000) ($148,000) ($50,000) ($21,000) 2013 ($868,000) ($155,000) ($53,000) ($22,000) 2014 ($906,000) ($162,000) ($55,000) ($23,000) 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 (Loss) fromGeneral Revenue Fund1 Probable Revenue (Loss) fromCities Probable Revenue (Loss) fromTransit Authorities Probable Revenue (Loss) fromCounties 2010 $0 $0 $0 $0 2011 ($794,000) ($140,000) ($48,000) ($20,000) 2012 ($831,000) ($148,000) ($50,000) ($21,000) 2013 ($868,000) ($155,000) ($53,000) ($22,000) 2014 ($906,000) ($162,000) ($55,000) ($23,000) Fiscal Analysis The bill would amend Chapter 151 of the Tax Code to create an additional period for the exemption from the sales tax for certain energy efficient products. Under current law, these specified products are exempt if purchased during a period around Memorial Day. The bill would also exempt these products from the sales tax if sold on Labor Day. The bill would take effect July 1, 2009, assuming that it receives the requisite two-thirds majority vote in both houses of the Legislature. Otherwise, it would take effect October 1, 2009. Methodology Data on the sale of the eligible energy efficient products were gathered from the U.S. Department of Energy. Sales were adjusted to reflect sales made in Texas, adjusted for the appropriate time period, multiplied by the state sales tax rate, adjusted for potential effective dates of July 1, 2009 and October 1, 2009, and extrapolated through fiscal year 2014. If the effective date of the bill was October 21, 2009 (after Labor Day), there would be no impact on fiscal year 2010 revenue. 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 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 2010 ($754,000) ($135,000) ($46,000) ($19,000) 2011 ($794,000) ($140,000) ($48,000) ($20,000) 2012 ($831,000) ($148,000) ($50,000) ($21,000) 2013 ($868,000) ($155,000) ($53,000) ($22,000) 2014 ($906,000) ($162,000) ($55,000) ($23,000)
2010 ($754,000) ($135,000) ($46,000) ($19,000)
2011 ($794,000) ($140,000) ($48,000) ($20,000)
2012 ($831,000) ($148,000) ($50,000) ($21,000)
2013 ($868,000) ($155,000) ($53,000) ($22,000)
2014 ($906,000) ($162,000) ($55,000) ($23,000)
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 (Loss) fromGeneral Revenue Fund1 Probable Revenue (Loss) fromCities Probable Revenue (Loss) fromTransit Authorities Probable Revenue (Loss) fromCounties 2010 $0 $0 $0 $0 2011 ($794,000) ($140,000) ($48,000) ($20,000) 2012 ($831,000) ($148,000) ($50,000) ($21,000) 2013 ($868,000) ($155,000) ($53,000) ($22,000) 2014 ($906,000) ($162,000) ($55,000) ($23,000) Fiscal Analysis The bill would amend Chapter 151 of the Tax Code to create an additional period for the exemption from the sales tax for certain energy efficient products. Under current law, these specified products are exempt if purchased during a period around Memorial Day. The bill would also exempt these products from the sales tax if sold on Labor Day. The bill would take effect July 1, 2009, assuming that it receives the requisite two-thirds majority vote in both houses of the Legislature. Otherwise, it would take effect October 1, 2009. Methodology Data on the sale of the eligible energy efficient products were gathered from the U.S. Department of Energy. Sales were adjusted to reflect sales made in Texas, adjusted for the appropriate time period, multiplied by the state sales tax rate, adjusted for potential effective dates of July 1, 2009 and October 1, 2009, and extrapolated through fiscal year 2014. If the effective date of the bill was October 21, 2009 (after Labor Day), there would be no impact on fiscal year 2010 revenue.
Fiscal Year Probable Revenue (Loss) fromGeneral Revenue Fund1 Probable Revenue (Loss) fromCities Probable Revenue (Loss) fromTransit Authorities Probable Revenue (Loss) fromCounties 2010 $0 $0 $0 $0 2011 ($794,000) ($140,000) ($48,000) ($20,000) 2012 ($831,000) ($148,000) ($50,000) ($21,000) 2013 ($868,000) ($155,000) ($53,000) ($22,000) 2014 ($906,000) ($162,000) ($55,000) ($23,000)
2010 $0 $0 $0 $0
2011 ($794,000) ($140,000) ($48,000) ($20,000)
2012 ($831,000) ($148,000) ($50,000) ($21,000)
2013 ($868,000) ($155,000) ($53,000) ($22,000)
2014 ($906,000) ($162,000) ($55,000) ($23,000)
Fiscal Analysis
The bill would amend Chapter 151 of the Tax Code to create an additional period for the exemption from the sales tax for certain energy efficient products. Under current law, these specified products are exempt if purchased during a period around Memorial Day. The bill would also exempt these products from the sales tax if sold on Labor Day. The bill would take effect July 1, 2009, assuming that it receives the requisite two-thirds majority vote 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 an additional period for the exemption from the sales tax for certain energy efficient products. Under current law, these specified products are exempt if purchased during a period around Memorial Day. The bill would also exempt these products from the sales tax if sold on Labor Day.
The bill would take effect July 1, 2009, assuming that it receives the requisite two-thirds majority vote in both houses of the Legislature. Otherwise, it would take effect October 1, 2009.
Methodology
Data on the sale of the eligible energy efficient products were gathered from the U.S. Department of Energy. Sales were adjusted to reflect sales made in Texas, adjusted for the appropriate time period, multiplied by the state sales tax rate, adjusted for potential effective dates of July 1, 2009 and October 1, 2009, and extrapolated through fiscal year 2014. If the effective date of the bill was October 21, 2009 (after Labor Day), there would be no impact on fiscal year 2010 revenue.
Data on the sale of the eligible energy efficient products were gathered from the U.S. Department of Energy. Sales were adjusted to reflect sales made in Texas, adjusted for the appropriate time period, multiplied by the state sales tax rate, adjusted for potential effective dates of July 1, 2009 and October 1, 2009, and extrapolated through fiscal year 2014. If the effective date of the bill was October 21, 2009 (after Labor Day), there would be no impact on fiscal year 2010 revenue.
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