LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 82ND LEGISLATIVE REGULAR SESSION April 16, 2011 TO: Honorable Harvey Hilderbran, Chair, House Committee on Ways & Means FROM: John S O'Brien, Director, Legislative Budget Board IN RE:HB2016 by Martinez Fischer (Relating to the operation of certain rapid transit authorities, including the power to repeal the local sales and use tax exemption for telecommunications services and the use of revenue from the tax.), As Introduced No fiscal implication to the State is anticipated. The bill would amend Chapter 322 of the Tax Code, regarding sales and use taxes for special purpose taxing authorities, to require that a transportation authority created before 1980 in which the principal municipality has a population of less than 1.5 million could not repeal an exemption of the local sales and use tax for telecommunications services unless the repeal was approved by the authority's committee charged with approving fares, tolls, and other charges. Revenue resulting from an exemption repeal could only be used to provide transportation services to persons with disabilities. The reinstatement of such an exemption would be approved in the same manner. The bill would amend Chapter 451 of the Transportation Code, regarding metropolitan transportation authorities, to require authorities in which the principal municipality has a population of under 1.5 million to receive the approval of a committee for changes in fares, tolls, and other charges. Under current law the population threshold for the principal municipality is 1.2 million. The bill would have no state revenue implications.This bill would take effect immediately upon enactment, assuming that it received the requisite two-thirds majority votes in both houses of the Legislature. Otherwise, it would take effect September 1, 2011. Local Government Impact Depending on the change in exemptions there could be an indeterminate change in local sales and use tax revenue. Source Agencies:304 Comptroller of Public Accounts LBB Staff: JOB, KK, SD
LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 82ND LEGISLATIVE REGULAR SESSION
April 16, 2011
TO: Honorable Harvey Hilderbran, Chair, House Committee on Ways & Means FROM: John S O'Brien, Director, Legislative Budget Board IN RE:HB2016 by Martinez Fischer (Relating to the operation of certain rapid transit authorities, including the power to repeal the local sales and use tax exemption for telecommunications services and the use of revenue from the tax.), As Introduced
TO: Honorable Harvey Hilderbran, Chair, House Committee on Ways & Means
FROM: John S O'Brien, Director, Legislative Budget Board
IN RE: HB2016 by Martinez Fischer (Relating to the operation of certain rapid transit authorities, including the power to repeal the local sales and use tax exemption for telecommunications services and the use of revenue from the tax.), As Introduced
Honorable Harvey Hilderbran, Chair, House Committee on Ways & Means
Honorable Harvey Hilderbran, Chair, House Committee on Ways & Means
John S O'Brien, Director, Legislative Budget Board
John S O'Brien, Director, Legislative Budget Board
HB2016 by Martinez Fischer (Relating to the operation of certain rapid transit authorities, including the power to repeal the local sales and use tax exemption for telecommunications services and the use of revenue from the tax.), As Introduced
HB2016 by Martinez Fischer (Relating to the operation of certain rapid transit authorities, including the power to repeal the local sales and use tax exemption for telecommunications services and the use of revenue from the tax.), As Introduced
No fiscal implication to the State is anticipated.
No fiscal implication to the State is anticipated.
The bill would amend Chapter 322 of the Tax Code, regarding sales and use taxes for special purpose taxing authorities, to require that a transportation authority created before 1980 in which the principal municipality has a population of less than 1.5 million could not repeal an exemption of the local sales and use tax for telecommunications services unless the repeal was approved by the authority's committee charged with approving fares, tolls, and other charges. Revenue resulting from an exemption repeal could only be used to provide transportation services to persons with disabilities. The reinstatement of such an exemption would be approved in the same manner. The bill would amend Chapter 451 of the Transportation Code, regarding metropolitan transportation authorities, to require authorities in which the principal municipality has a population of under 1.5 million to receive the approval of a committee for changes in fares, tolls, and other charges. Under current law the population threshold for the principal municipality is 1.2 million. The bill would have no state revenue implications.This bill would take effect immediately upon enactment, assuming that it received the requisite two-thirds majority votes in both houses of the Legislature. Otherwise, it would take effect September 1, 2011.
The bill would amend Chapter 322 of the Tax Code, regarding sales and use taxes for special purpose taxing authorities, to require that a transportation authority created before 1980 in which the principal municipality has a population of less than 1.5 million could not repeal an exemption of the local sales and use tax for telecommunications services unless the repeal was approved by the authority's committee charged with approving fares, tolls, and other charges. Revenue resulting from an exemption repeal could only be used to provide transportation services to persons with disabilities. The reinstatement of such an exemption would be approved in the same manner. The bill would amend Chapter 451 of the Transportation Code, regarding metropolitan transportation authorities, to require authorities in which the principal municipality has a population of under 1.5 million to receive the approval of a committee for changes in fares, tolls, and other charges. Under current law the population threshold for the principal municipality is 1.2 million.
The bill would have no state revenue implications.This bill would take effect immediately upon enactment, assuming that it received the requisite two-thirds majority votes in both houses of the Legislature. Otherwise, it would take effect September 1, 2011.
Local Government Impact
Depending on the change in exemptions there could be an indeterminate change in local sales and use tax revenue.
Source Agencies: 304 Comptroller of Public Accounts
304 Comptroller of Public Accounts
LBB Staff: JOB, KK, SD
JOB, KK, SD