LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 81ST LEGISLATIVE REGULAR SESSION May 28, 2009 TO: Honorable David Dewhurst, Lieutenant Governor, Senate FROM: John S. O'Brien, Director, Legislative Budget Board IN RE:SB1199 by Ogden (relating to refunds of and credits for certain sales and use taxes paid by certain exempt organizations.), As Passed 2nd House Depending upon the amounts related to refund requests or credits claimed by organizations for a period before the date specified by the bill, there could be an indeterminate amount of revenue gain to the state. The bill would amend Chapter 151 of the Tax Code to specify that for the purposes of obtaining a refund or claiming a credit for sales tax, a religious, educational, or public service organization is not considered exempted from the sales tax before the earlier of the date the organization applied for the exemption with the Comptroller or the date of assessment of the organization's tax liability by the Comptroller as a result of an audit. The amounts related to refund requests or credits claimed by these types of organizations for a period before the date specified by the bill are not known, therefore the fiscal impact cannot be determined. The bill would also entitle a seller to a credit or reimbursement of the amount of sales tax refunded to a purchaser when the purchaser receives a full or partial refund of the sales price of a returned taxable item. The comptroller indicates the section of the bill would have so significant fiscal impact to the state. The bill would take effect September 1, 2009. Local Government Impact No significant fiscal implication to units of local government is anticipated. Source Agencies:304 Comptroller of Public Accounts LBB Staff: JOB, MN, SD, KK
LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 81ST LEGISLATIVE REGULAR SESSION
May 28, 2009
TO: Honorable David Dewhurst, Lieutenant Governor, Senate FROM: John S. O'Brien, Director, Legislative Budget Board IN RE:SB1199 by Ogden (relating to refunds of and credits for certain sales and use taxes paid by certain exempt organizations.), As Passed 2nd House
TO: Honorable David Dewhurst, Lieutenant Governor, Senate
FROM: John S. O'Brien, Director, Legislative Budget Board
IN RE: SB1199 by Ogden (relating to refunds of and credits for certain sales and use taxes paid by certain exempt organizations.), As Passed 2nd House
Honorable David Dewhurst, Lieutenant Governor, Senate
Honorable David Dewhurst, Lieutenant Governor, Senate
John S. O'Brien, Director, Legislative Budget Board
John S. O'Brien, Director, Legislative Budget Board
SB1199 by Ogden (relating to refunds of and credits for certain sales and use taxes paid by certain exempt organizations.), As Passed 2nd House
SB1199 by Ogden (relating to refunds of and credits for certain sales and use taxes paid by certain exempt organizations.), As Passed 2nd House
Depending upon the amounts related to refund requests or credits claimed by organizations for a period before the date specified by the bill, there could be an indeterminate amount of revenue gain to the state.
Depending upon the amounts related to refund requests or credits claimed by organizations for a period before the date specified by the bill, there could be an indeterminate amount of revenue gain to the state.
The bill would amend Chapter 151 of the Tax Code to specify that for the purposes of obtaining a refund or claiming a credit for sales tax, a religious, educational, or public service organization is not considered exempted from the sales tax before the earlier of the date the organization applied for the exemption with the Comptroller or the date of assessment of the organization's tax liability by the Comptroller as a result of an audit. The amounts related to refund requests or credits claimed by these types of organizations for a period before the date specified by the bill are not known, therefore the fiscal impact cannot be determined. The bill would also entitle a seller to a credit or reimbursement of the amount of sales tax refunded to a purchaser when the purchaser receives a full or partial refund of the sales price of a returned taxable item. The comptroller indicates the section of the bill would have so significant fiscal impact to the state. The bill would take effect September 1, 2009.
The bill would amend Chapter 151 of the Tax Code to specify that for the purposes of obtaining a refund or claiming a credit for sales tax, a religious, educational, or public service organization is not considered exempted from the sales tax before the earlier of the date the organization applied for the exemption with the Comptroller or the date of assessment of the organization's tax liability by the Comptroller as a result of an audit.
The amounts related to refund requests or credits claimed by these types of organizations for a period before the date specified by the bill are not known, therefore the fiscal impact cannot be determined.
The bill would also entitle a seller to a credit or reimbursement of the amount of sales tax refunded to a purchaser when the purchaser receives a full or partial refund of the sales price of a returned taxable item. The comptroller indicates the section of the bill would have so significant fiscal impact to the state.
The bill would take effect September 1, 2009.
Local Government Impact
No significant 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, KK
JOB, MN, SD, KK