LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 81ST LEGISLATIVE REGULAR SESSION March 1, 2009 TO: Honorable Steve Ogden, Chair, Senate Committee on Finance FROM: John S. O'Brien, Director, Legislative Budget Board IN RE:SB22 by Zaffirini (Relating to exempting books purchased by university and college students from the sales tax for a limited period.), As Introduced Estimated Two-year Net Impact to General Revenue Related Funds for SB22, As Introduced: a negative impact of ($67,668,000) through the biennium ending August 31, 2011, if the effective date of the bill is July 1, 2009; or a negative impact of ($52,863,000) through the biennium ending August 31, 2011, if the effective date of the bill is October 1, 2009. The following fiscal implications assume an effective date of July 1, 2009. General Revenue-Related Funds, Six-Year Impact: Fiscal Year Probable Net Positive/(Negative) Impact to General Revenue Related Funds 2009 ($4,663,000) 2010 ($30,330,000) 2011 ($32,675,000) 2012 ($35,201,000) 2013 ($37,922,000) 2014 ($40,853,000) General Revenue-Related Funds, Five-Year Impact: Fiscal Year Probable Net Positive/(Negative) Impact to General Revenue Related Funds 2010 ($20,188,000) 2011 ($32,675,000) 2012 ($35,201,000) 2013 ($37,922,000) 2014 ($40,853,000) All Funds, Six-Year Impact: 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 2009 ($4,663,000) $0 $0 $0 2010 ($30,330,000) ($5,641,000) ($1,924,000) ($752,000) 2011 ($32,675,000) ($6,077,000) ($2,072,000) ($810,000) 2012 ($35,201,000) ($6,547,000) ($2,232,000) ($872,000) 2013 ($37,922,000) ($7,053,000) ($2,405,000) ($940,000) 2014 ($40,853,000) ($7,598,000) ($2,591,000) ($1,012,000) The following fiscal implications assume 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 ($20,188,000) ($2,820,000) ($962,000) ($376,000) 2011 ($32,675,000) ($6,077,000) ($2,072,000) ($810,000) 2012 ($35,201,000) ($6,547,000) ($2,232,000) ($872,000) 2013 ($37,922,000) ($7,053,000) ($2,405,000) ($940,000) 2014 ($40,853,000) ($7,598,000) ($2,591,000) ($1,012,000) Fiscal Analysis The bill would amend Chapter 151 of the Tax Code, regarding the sales tax, to exempt books from the sales tax when purchased by a student enrolled at a Texas institution of higher education and the sale takes place within a specified 10-day period each January and August. A person could establish eligibility for the exemption by presenting a valid student identification card. This 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 sale of books in Texas were gathered from public and private sources, including Comptroller tax files. Estimated book sales were adjusted for the exemption period; multiplied by the sales tax rate; adjusted for potential effective dates for the bill of July 1, 2009, and October 1, 2009; and extrapolated through fiscal 2014. Fiscal implications on units of local government were estimated proportionally. There would be no impact on local governments in fiscal 2009 because August sales tax collections remitted to the Comptroller are not allocated to the local jurisdictions until the next fiscal year. Local Government Impact Local units of government would have a corresponding fiscal impact from sales tax revenues, as indicated in the above table. According to the Comptroller of Public Accounts, there would be no impact on local governments in fiscal 2009 as August sales tax collections remitted to the Comptroller are not allocated to the local jurisdiction until the next fiscal year. Source Agencies:304 Comptroller of Public Accounts, 710 Texas A&M University System Administrative and General Offices, 720 The University of Texas System Administration LBB Staff: JOB, MN, SD, KK, KY
LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 81ST LEGISLATIVE REGULAR SESSION
March 1, 2009
TO: Honorable Steve Ogden, Chair, Senate Committee on Finance FROM: John S. O'Brien, Director, Legislative Budget Board IN RE:SB22 by Zaffirini (Relating to exempting books purchased by university and college students from the sales tax for a limited period.), As Introduced
TO: Honorable Steve Ogden, Chair, Senate Committee on Finance
FROM: John S. O'Brien, Director, Legislative Budget Board
IN RE: SB22 by Zaffirini (Relating to exempting books purchased by university and college students from the sales tax for a limited period.), As Introduced
Honorable Steve Ogden, Chair, Senate Committee on Finance
Honorable Steve Ogden, Chair, Senate Committee on Finance
John S. O'Brien, Director, Legislative Budget Board
John S. O'Brien, Director, Legislative Budget Board
SB22 by Zaffirini (Relating to exempting books purchased by university and college students from the sales tax for a limited period.), As Introduced
SB22 by Zaffirini (Relating to exempting books purchased by university and college students from the sales tax for a limited period.), As Introduced
Estimated Two-year Net Impact to General Revenue Related Funds for SB22, As Introduced: a negative impact of ($67,668,000) through the biennium ending August 31, 2011, if the effective date of the bill is July 1, 2009; or a negative impact of ($52,863,000) 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 SB22, As Introduced: a negative impact of ($67,668,000) through the biennium ending August 31, 2011, if the effective date of the bill is July 1, 2009; or a negative impact of ($52,863,000) through the biennium ending August 31, 2011, if the effective date of the bill is October 1, 2009.
The following fiscal implications assume an effective date of July 1, 2009.
The following fiscal implications assume an effective date of July 1, 2009.
General Revenue-Related Funds, Six-Year Impact: Fiscal Year Probable Net Positive/(Negative) Impact to General Revenue Related Funds 2009 ($4,663,000) 2010 ($30,330,000) 2011 ($32,675,000) 2012 ($35,201,000) 2013 ($37,922,000) 2014 ($40,853,000)
2009 ($4,663,000)
2010 ($30,330,000)
2011 ($32,675,000)
2012 ($35,201,000)
2013 ($37,922,000)
2014 ($40,853,000)
General Revenue-Related Funds, Five-Year Impact: Fiscal Year Probable Net Positive/(Negative) Impact to General Revenue Related Funds 2010 ($20,188,000) 2011 ($32,675,000) 2012 ($35,201,000) 2013 ($37,922,000) 2014 ($40,853,000)
2010 ($20,188,000)
2011 ($32,675,000)
2012 ($35,201,000)
2013 ($37,922,000)
2014 ($40,853,000)
All Funds, Six-Year Impact: 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 2009 ($4,663,000) $0 $0 $0 2010 ($30,330,000) ($5,641,000) ($1,924,000) ($752,000) 2011 ($32,675,000) ($6,077,000) ($2,072,000) ($810,000) 2012 ($35,201,000) ($6,547,000) ($2,232,000) ($872,000) 2013 ($37,922,000) ($7,053,000) ($2,405,000) ($940,000) 2014 ($40,853,000) ($7,598,000) ($2,591,000) ($1,012,000) The following fiscal implications assume 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 ($20,188,000) ($2,820,000) ($962,000) ($376,000) 2011 ($32,675,000) ($6,077,000) ($2,072,000) ($810,000) 2012 ($35,201,000) ($6,547,000) ($2,232,000) ($872,000) 2013 ($37,922,000) ($7,053,000) ($2,405,000) ($940,000) 2014 ($40,853,000) ($7,598,000) ($2,591,000) ($1,012,000) Fiscal Analysis The bill would amend Chapter 151 of the Tax Code, regarding the sales tax, to exempt books from the sales tax when purchased by a student enrolled at a Texas institution of higher education and the sale takes place within a specified 10-day period each January and August. A person could establish eligibility for the exemption by presenting a valid student identification card. This 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 sale of books in Texas were gathered from public and private sources, including Comptroller tax files. Estimated book sales were adjusted for the exemption period; multiplied by the sales tax rate; adjusted for potential effective dates for the bill of July 1, 2009, and October 1, 2009; and extrapolated through fiscal 2014. Fiscal implications on units of local government were estimated proportionally. There would be no impact on local governments in fiscal 2009 because August sales tax collections remitted to the Comptroller are not allocated to the local jurisdictions until the next fiscal year. Local Government Impact Local units of government would have a corresponding fiscal impact from sales tax revenues, as indicated in the above table. According to the Comptroller of Public Accounts, there would be no impact on local governments in fiscal 2009 as August sales tax collections remitted to the Comptroller are not allocated to the local jurisdiction until the next fiscal year. Source Agencies:304 Comptroller of Public Accounts, 710 Texas A&M University System Administrative and General Offices, 720 The University of Texas System Administration LBB Staff: JOB, MN, SD, KK, KY
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 2009 ($4,663,000) $0 $0 $0 2010 ($30,330,000) ($5,641,000) ($1,924,000) ($752,000) 2011 ($32,675,000) ($6,077,000) ($2,072,000) ($810,000) 2012 ($35,201,000) ($6,547,000) ($2,232,000) ($872,000) 2013 ($37,922,000) ($7,053,000) ($2,405,000) ($940,000) 2014 ($40,853,000) ($7,598,000) ($2,591,000) ($1,012,000)
2009 ($4,663,000) $0 $0 $0
2010 ($30,330,000) ($5,641,000) ($1,924,000) ($752,000)
2011 ($32,675,000) ($6,077,000) ($2,072,000) ($810,000)
2012 ($35,201,000) ($6,547,000) ($2,232,000) ($872,000)
2013 ($37,922,000) ($7,053,000) ($2,405,000) ($940,000)
2014 ($40,853,000) ($7,598,000) ($2,591,000) ($1,012,000)
The following fiscal implications assume 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 ($20,188,000) ($2,820,000) ($962,000) ($376,000) 2011 ($32,675,000) ($6,077,000) ($2,072,000) ($810,000) 2012 ($35,201,000) ($6,547,000) ($2,232,000) ($872,000) 2013 ($37,922,000) ($7,053,000) ($2,405,000) ($940,000) 2014 ($40,853,000) ($7,598,000) ($2,591,000) ($1,012,000) Fiscal Analysis The bill would amend Chapter 151 of the Tax Code, regarding the sales tax, to exempt books from the sales tax when purchased by a student enrolled at a Texas institution of higher education and the sale takes place within a specified 10-day period each January and August. A person could establish eligibility for the exemption by presenting a valid student identification card. This 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 sale of books in Texas were gathered from public and private sources, including Comptroller tax files. Estimated book sales were adjusted for the exemption period; multiplied by the sales tax rate; adjusted for potential effective dates for the bill of July 1, 2009, and October 1, 2009; and extrapolated through fiscal 2014. Fiscal implications on units of local government were estimated proportionally. There would be no impact on local governments in fiscal 2009 because August sales tax collections remitted to the Comptroller are not allocated to the local jurisdictions until the next fiscal year.
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 ($20,188,000) ($2,820,000) ($962,000) ($376,000) 2011 ($32,675,000) ($6,077,000) ($2,072,000) ($810,000) 2012 ($35,201,000) ($6,547,000) ($2,232,000) ($872,000) 2013 ($37,922,000) ($7,053,000) ($2,405,000) ($940,000) 2014 ($40,853,000) ($7,598,000) ($2,591,000) ($1,012,000)
2010 ($20,188,000) ($2,820,000) ($962,000) ($376,000)
2011 ($32,675,000) ($6,077,000) ($2,072,000) ($810,000)
2012 ($35,201,000) ($6,547,000) ($2,232,000) ($872,000)
2013 ($37,922,000) ($7,053,000) ($2,405,000) ($940,000)
2014 ($40,853,000) ($7,598,000) ($2,591,000) ($1,012,000)
Fiscal Analysis
The bill would amend Chapter 151 of the Tax Code, regarding the sales tax, to exempt books from the sales tax when purchased by a student enrolled at a Texas institution of higher education and the sale takes place within a specified 10-day period each January and August. A person could establish eligibility for the exemption by presenting a valid student identification card. This 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, regarding the sales tax, to exempt books from the sales tax when purchased by a student enrolled at a Texas institution of higher education and the sale takes place within a specified 10-day period each January and August.
A person could establish eligibility for the exemption by presenting a valid student identification card.
This 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 sale of books in Texas were gathered from public and private sources, including Comptroller tax files. Estimated book sales were adjusted for the exemption period; multiplied by the sales tax rate; adjusted for potential effective dates for the bill of July 1, 2009, and October 1, 2009; and extrapolated through fiscal 2014. Fiscal implications on units of local government were estimated proportionally. There would be no impact on local governments in fiscal 2009 because August sales tax collections remitted to the Comptroller are not allocated to the local jurisdictions until the next fiscal year.
Data on the sale of books in Texas were gathered from public and private sources, including Comptroller tax files. Estimated book sales were adjusted for the exemption period; multiplied by the sales tax rate; adjusted for potential effective dates for the bill of July 1, 2009, and October 1, 2009; and extrapolated through fiscal 2014. Fiscal implications on units of local government were estimated proportionally.
There would be no impact on local governments in fiscal 2009 because August sales tax collections remitted to the Comptroller are not allocated to the local jurisdictions until the next fiscal year.
Local Government Impact
Local units of government would have a corresponding fiscal impact from sales tax revenues, as indicated in the above table. According to the Comptroller of Public Accounts, there would be no impact on local governments in fiscal 2009 as August sales tax collections remitted to the Comptroller are not allocated to the local jurisdiction until the next fiscal year.
Source Agencies: 304 Comptroller of Public Accounts, 710 Texas A&M University System Administrative and General Offices, 720 The University of Texas System Administration
304 Comptroller of Public Accounts, 710 Texas A&M University System Administrative and General Offices, 720 The University of Texas System Administration
LBB Staff: JOB, MN, SD, KK, KY
JOB, MN, SD, KK, KY