LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 81ST LEGISLATIVE REGULAR SESSION March 24, 2009 TO: Honorable Rene Oliveira, Chair, House Committee on Ways & Means FROM: John S. O'Brien, Director, Legislative Budget Board IN RE:HB803 by Burnam (Relating to the period during which certain energy-efficient products are exempt from the sales tax.), As Introduced Estimated Two-year Net Impact to General Revenue Related Funds for HB803, As Introduced: a negative impact of ($46,399,000) through the biennium ending August 31, 2011, if the effective date of the bill is July 1, 2009; or a negative impact of ($41,036,000) 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
March 24, 2009
TO: Honorable Rene Oliveira, Chair, House Committee on Ways & Means FROM: John S. O'Brien, Director, Legislative Budget Board IN RE:HB803 by Burnam (Relating to the period during which certain energy-efficient products are exempt from the sales tax.), As Introduced
TO: Honorable Rene Oliveira, Chair, House Committee on Ways & Means
FROM: John S. O'Brien, Director, Legislative Budget Board
IN RE: HB803 by Burnam (Relating to the period during which certain energy-efficient products are exempt from the sales 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
HB803 by Burnam (Relating to the period during which certain energy-efficient products are exempt from the sales tax.), As Introduced
HB803 by Burnam (Relating to the period during which certain energy-efficient products are exempt from the sales tax.), As Introduced
Estimated Two-year Net Impact to General Revenue Related Funds for HB803, As Introduced: a negative impact of ($46,399,000) through the biennium ending August 31, 2011, if the effective date of the bill is July 1, 2009; or a negative impact of ($41,036,000) 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 HB803, As Introduced: a negative impact of ($46,399,000) through the biennium ending August 31, 2011, if the effective date of the bill is July 1, 2009; or a negative impact of ($41,036,000) through the biennium ending August 31, 2011, if the effective date of the bill is October 1, 2009.
General Revenue-Related Funds, Six-Year Impact: Fiscal Year Probable Net Positive/(Negative) Impact to General Revenue Related Funds 2009 ($1,735,000) 2010 ($21,771,000) 2011 ($22,893,000) 2012 ($23,933,000) 2013 ($24,994,000) 2014 ($26,060,000)
2009 ($1,735,000)
2010 ($21,771,000)
2011 ($22,893,000)
2012 ($23,933,000)
2013 ($24,994,000)
2014 ($26,060,000)
General Revenue-Related Funds, Five-Year Impact: Fiscal Year Probable Net Positive/(Negative) Impact to General Revenue Related Funds 2010 ($18,143,000) 2011 ($22,893,000) 2012 ($23,933,000) 2013 ($24,994,000) 2014 ($26,060,000)
2010 ($18,143,000)
2011 ($22,893,000)
2012 ($23,933,000)
2013 ($24,994,000)
2014 ($26,060,000)
All Funds, Six-Year Impact: Fiscal Year Probable Savings/(Cost) fromGeneral Revenue Fund1 Probable Savings/(Cost) fromCities Probable Savings/(Cost) fromTransit Authorities Probable Savings/(Cost) fromCounties 2009 ($1,735,000) $0 $0 $0 2010 ($21,771,000) ($4,049,000) ($1,381,000) ($572,000) 2011 ($22,893,000) ($4,258,000) ($1,452,000) ($602,000) 2012 ($23,933,000) ($4,451,000) ($1,518,000) ($629,000) 2013 ($24,994,000) ($4,648,000) ($1,585,000) ($657,000) 2014 ($26,060,000) ($4,847,000) ($1,653,000) ($685,000) 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 Gain/(Loss) fromGeneral Revenue Fund1 Probable Revenue Gain/(Loss) fromCities Probable Revenue Gain/(Loss) fromTransit Authorities Probable Revenue Gain/(Loss) fromCounties 2010 ($18,143,000) ($3,037,000) ($1,036,000) ($429,000) 2011 ($22,893,000) ($4,258,000) ($1,452,000) ($602,000) 2012 ($23,933,000) ($4,451,000) ($1,518,000) ($629,000) 2013 ($24,994,000) ($4,648,000) ($1,585,000) ($657,000) 2014 ($26,060,000) ($4,847,000) ($1,653,000) ($685,000) Fiscal Analysis The bill would amend Chapter 151 of the Tax Code to create a sales tax exemption for certain energy-efficient products if the products were purchased by a person receiving services under the Temporary Assistance for Needy Families (TANF) or food stamp program. The exemption would apply to items eligible for the current sales tax holiday for energy-efficient products. A person requesting the exemption would be required to present a Lone Star Card issued by the Health and Human Services Commission as proof the person is receiving TANF or food stamp services. The bill would take effect July 1, 2009, assuming that it received the requisite two-thirds majority votes in both houses of the Legislature. Otherwise, it would take effect October 1, 2009. Methodology Data on the number of households receiving TANF or food stamp services were gathered from the Health and Human Services Commission. Expenditures for energy-efficient products by households receiving these services were estimated based on data gathered from the U.S. Bureau of Labor Statistics. Expenditures were multiplied by the state sales tax rate; adjusted for potential effective dates of July 1, 2009 and October 1, 2009; and extrapolated through fiscal 2014. Fiscal implications on units of local government were estimated proportionally. Local Government Impact Local government entities would have a proportional loss of sales tax revenue under provisions of the bill as reflected in the above table. Source Agencies:304 Comptroller of Public Accounts LBB Staff: JOB, MN, SD, KK
Fiscal Year Probable Savings/(Cost) fromGeneral Revenue Fund1 Probable Savings/(Cost) fromCities Probable Savings/(Cost) fromTransit Authorities Probable Savings/(Cost) fromCounties 2009 ($1,735,000) $0 $0 $0 2010 ($21,771,000) ($4,049,000) ($1,381,000) ($572,000) 2011 ($22,893,000) ($4,258,000) ($1,452,000) ($602,000) 2012 ($23,933,000) ($4,451,000) ($1,518,000) ($629,000) 2013 ($24,994,000) ($4,648,000) ($1,585,000) ($657,000) 2014 ($26,060,000) ($4,847,000) ($1,653,000) ($685,000)
2009 ($1,735,000) $0 $0 $0
2010 ($21,771,000) ($4,049,000) ($1,381,000) ($572,000)
2011 ($22,893,000) ($4,258,000) ($1,452,000) ($602,000)
2012 ($23,933,000) ($4,451,000) ($1,518,000) ($629,000)
2013 ($24,994,000) ($4,648,000) ($1,585,000) ($657,000)
2014 ($26,060,000) ($4,847,000) ($1,653,000) ($685,000)
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 Gain/(Loss) fromGeneral Revenue Fund1 Probable Revenue Gain/(Loss) fromCities Probable Revenue Gain/(Loss) fromTransit Authorities Probable Revenue Gain/(Loss) fromCounties 2010 ($18,143,000) ($3,037,000) ($1,036,000) ($429,000) 2011 ($22,893,000) ($4,258,000) ($1,452,000) ($602,000) 2012 ($23,933,000) ($4,451,000) ($1,518,000) ($629,000) 2013 ($24,994,000) ($4,648,000) ($1,585,000) ($657,000) 2014 ($26,060,000) ($4,847,000) ($1,653,000) ($685,000) Fiscal Analysis The bill would amend Chapter 151 of the Tax Code to create a sales tax exemption for certain energy-efficient products if the products were purchased by a person receiving services under the Temporary Assistance for Needy Families (TANF) or food stamp program. The exemption would apply to items eligible for the current sales tax holiday for energy-efficient products. A person requesting the exemption would be required to present a Lone Star Card issued by the Health and Human Services Commission as proof the person is receiving TANF or food stamp services. The bill would take effect July 1, 2009, assuming that it received the requisite two-thirds majority votes in both houses of the Legislature. Otherwise, it would take effect October 1, 2009. Methodology Data on the number of households receiving TANF or food stamp services were gathered from the Health and Human Services Commission. Expenditures for energy-efficient products by households receiving these services were estimated based on data gathered from the U.S. Bureau of Labor Statistics. Expenditures were multiplied by the state sales tax rate; adjusted for potential effective dates of July 1, 2009 and October 1, 2009; and extrapolated through fiscal 2014. Fiscal implications on units of local government were estimated proportionally.
Fiscal Year Probable Revenue Gain/(Loss) fromGeneral Revenue Fund1 Probable Revenue Gain/(Loss) fromCities Probable Revenue Gain/(Loss) fromTransit Authorities Probable Revenue Gain/(Loss) fromCounties 2010 ($18,143,000) ($3,037,000) ($1,036,000) ($429,000) 2011 ($22,893,000) ($4,258,000) ($1,452,000) ($602,000) 2012 ($23,933,000) ($4,451,000) ($1,518,000) ($629,000) 2013 ($24,994,000) ($4,648,000) ($1,585,000) ($657,000) 2014 ($26,060,000) ($4,847,000) ($1,653,000) ($685,000)
2010 ($18,143,000) ($3,037,000) ($1,036,000) ($429,000)
2011 ($22,893,000) ($4,258,000) ($1,452,000) ($602,000)
2012 ($23,933,000) ($4,451,000) ($1,518,000) ($629,000)
2013 ($24,994,000) ($4,648,000) ($1,585,000) ($657,000)
2014 ($26,060,000) ($4,847,000) ($1,653,000) ($685,000)
Fiscal Analysis
The bill would amend Chapter 151 of the Tax Code to create a sales tax exemption for certain energy-efficient products if the products were purchased by a person receiving services under the Temporary Assistance for Needy Families (TANF) or food stamp program. The exemption would apply to items eligible for the current sales tax holiday for energy-efficient products. A person requesting the exemption would be required to present a Lone Star Card issued by the Health and Human Services Commission as proof the person is receiving TANF or food stamp services. The bill would take effect July 1, 2009, assuming that it received the requisite two-thirds majority votes 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 a sales tax exemption for certain energy-efficient products if the products were purchased by a person receiving services under the Temporary Assistance for Needy Families (TANF) or food stamp program.
The bill would take effect July 1, 2009, assuming that it received the requisite two-thirds majority votes in both houses of the Legislature. Otherwise, it would take effect October 1, 2009.
Methodology
Data on the number of households receiving TANF or food stamp services were gathered from the Health and Human Services Commission. Expenditures for energy-efficient products by households receiving these services were estimated based on data gathered from the U.S. Bureau of Labor Statistics. Expenditures were multiplied by the state sales tax rate; adjusted for potential effective dates of July 1, 2009 and October 1, 2009; and extrapolated through fiscal 2014. Fiscal implications on units of local government were estimated proportionally.
Data on the number of households receiving TANF or food stamp services were gathered from the Health and Human Services Commission. Expenditures for energy-efficient products by households receiving these services were estimated based on data gathered from the U.S. Bureau of Labor Statistics. Expenditures were multiplied by the state sales tax rate; adjusted for potential effective dates of July 1, 2009 and October 1, 2009; and extrapolated through fiscal 2014. Fiscal implications on units of local government were estimated proportionally.
Local Government Impact
Local government entities would have a proportional loss of sales tax revenue under provisions of the bill as reflected in the above table.
Source Agencies: 304 Comptroller of Public Accounts
304 Comptroller of Public Accounts
LBB Staff: JOB, MN, SD, KK
JOB, MN, SD, KK