LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 82ND LEGISLATIVE REGULAR SESSION April 17, 2011 TO: Honorable Harvey Hilderbran, Chair, House Committee on Ways & Means FROM: John S O'Brien, Director, Legislative Budget Board IN RE:HB3012 by Giddings (Relating to the exemption from the sales tax for certain school art supplies during limited periods.), As Introduced Estimated Two-year Net Impact to General Revenue Related Funds for HB3012, As Introduced: a negative impact of ($1,350,000) through the biennium ending August 31, 2013, if the bill is effective immediately; or a negative impact of ($650,000) through the biennium ending August 31, 2013, if the effective date of the bill is September 1, 2011.
LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 82ND LEGISLATIVE REGULAR SESSION
April 17, 2011
TO: Honorable Harvey Hilderbran, Chair, House Committee on Ways & Means FROM: John S O'Brien, Director, Legislative Budget Board IN RE:HB3012 by Giddings (Relating to the exemption from the sales tax for certain school art supplies during limited periods.), As Introduced
TO: Honorable Harvey Hilderbran, Chair, House Committee on Ways & Means
FROM: John S O'Brien, Director, Legislative Budget Board
IN RE: HB3012 by Giddings (Relating to the exemption from the sales tax for certain school art supplies during limited periods.), 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
HB3012 by Giddings (Relating to the exemption from the sales tax for certain school art supplies during limited periods.), As Introduced
HB3012 by Giddings (Relating to the exemption from the sales tax for certain school art supplies during limited periods.), As Introduced
Estimated Two-year Net Impact to General Revenue Related Funds for HB3012, As Introduced: a negative impact of ($1,350,000) through the biennium ending August 31, 2013, if the bill is effective immediately; or a negative impact of ($650,000) through the biennium ending August 31, 2013, if the effective date of the bill is September 1, 2011.
Estimated Two-year Net Impact to General Revenue Related Funds for HB3012, As Introduced: a negative impact of ($1,350,000) through the biennium ending August 31, 2013, if the bill is effective immediately; or a negative impact of ($650,000) through the biennium ending August 31, 2013, if the effective date of the bill is September 1, 2011.
General Revenue-Related Funds, Six-Year Impact: Fiscal Year Probable Net Positive/(Negative) Impact to General Revenue Related Funds 2011 ($100,000) 2012 ($600,000) 2013 ($650,000) 2014 ($700,000) 2015 ($700,000) 2016 ($750,000)
2011 ($100,000)
2012 ($600,000)
2013 ($650,000)
2014 ($700,000)
2015 ($700,000)
2016 ($750,000)
General Revenue-Related Funds, Five-Year Impact: Fiscal Year Probable Net Positive/(Negative) Impact to General Revenue Related Funds 2012 ($50,000) 2013 ($600,000) 2014 ($700,000) 2015 ($700,000) 2016 ($750,000)
2012 ($50,000)
2013 ($600,000)
2014 ($700,000)
2015 ($700,000)
2016 ($750,000)
All Funds, Six-Year Impact: Fiscal Year Probable Revenue (Loss) fromGeneral Revenue Fund1 Probable Revenue (Loss) fromLocal Taxing Jurisdictions 2011 ($100,000) $0 2012 ($600,000) ($150,000) 2013 ($650,000) ($200,000) 2014 ($700,000) ($200,000) 2015 ($700,000) ($200,000) 2016 ($750,000) ($200,000) The table above displays the revenue loss if the bill was effective immediately. The table below displays the revenue loss if the bill is effective September 1, 2011. Fiscal Year Probable Revenue (Loss) fromGeneral Revenue Fund1 Probable Revenue (Loss) fromLocal Taxing Jurisdictions 2012 ($50,000) $0 2013 ($600,000) ($150,000) 2014 ($700,000) ($200,000) 2015 ($700,000) ($200,000) 2016 ($750,000) ($200,000) Fiscal Analysis The bill would amend Chapter 151, Tax Code to add certain school art supplies to the definition of school supplies eligible for exemption during a limited period. The bill would amend Section 151.327(a)(2) to add a paintbrush used for artwork, watercolors, and acrylic, tempera, and oil paints to the items eligible for exemption. The bill would take effect immediately if it receives the requisite two-thirds votes in each house, otherwise it would take effect September 1, 2011. Methodology Census Bureau data, school art supply price data, Texas Education Agency data on enrollment in art classes, and Comptroller tax files data were used to develop an estimate of school art supply purchases that would occur within the annual August tax holiday, and the state sales tax rate applied to estimate the revenue impact. Effects on units of local government were estimated proportionally. If the bill were to receive immediate effect, the additional items would be eligible for exemption during the August 2011 tax holiday. This would principally impact fiscal 2012 revenues, but there would be some effect in fiscal 2011 due to estimated prepayments of tax. If the bill were to take effect September 1, 2011 the first affected tax holiday would be that of August 2012. Local Government Impact There would be a proportional loss of sales and use tax revenue to local taxing jurisdictions. Source Agencies:304 Comptroller of Public Accounts LBB Staff: JOB, KK, SD
Fiscal Year Probable Revenue (Loss) fromGeneral Revenue Fund1 Probable Revenue (Loss) fromLocal Taxing Jurisdictions 2011 ($100,000) $0 2012 ($600,000) ($150,000) 2013 ($650,000) ($200,000) 2014 ($700,000) ($200,000) 2015 ($700,000) ($200,000) 2016 ($750,000) ($200,000)
2011 ($100,000) $0
2012 ($600,000) ($150,000)
2013 ($650,000) ($200,000)
2014 ($700,000) ($200,000)
2015 ($700,000) ($200,000)
2016 ($750,000) ($200,000)
The table above displays the revenue loss if the bill was effective immediately. The table below displays the revenue loss if the bill is effective September 1, 2011.
Fiscal Year Probable Revenue (Loss) fromGeneral Revenue Fund1 Probable Revenue (Loss) fromLocal Taxing Jurisdictions 2012 ($50,000) $0 2013 ($600,000) ($150,000) 2014 ($700,000) ($200,000) 2015 ($700,000) ($200,000) 2016 ($750,000) ($200,000) Fiscal Analysis The bill would amend Chapter 151, Tax Code to add certain school art supplies to the definition of school supplies eligible for exemption during a limited period. The bill would amend Section 151.327(a)(2) to add a paintbrush used for artwork, watercolors, and acrylic, tempera, and oil paints to the items eligible for exemption. The bill would take effect immediately if it receives the requisite two-thirds votes in each house, otherwise it would take effect September 1, 2011. Methodology Census Bureau data, school art supply price data, Texas Education Agency data on enrollment in art classes, and Comptroller tax files data were used to develop an estimate of school art supply purchases that would occur within the annual August tax holiday, and the state sales tax rate applied to estimate the revenue impact. Effects on units of local government were estimated proportionally. If the bill were to receive immediate effect, the additional items would be eligible for exemption during the August 2011 tax holiday. This would principally impact fiscal 2012 revenues, but there would be some effect in fiscal 2011 due to estimated prepayments of tax. If the bill were to take effect September 1, 2011 the first affected tax holiday would be that of August 2012.
Fiscal Year Probable Revenue (Loss) fromGeneral Revenue Fund1 Probable Revenue (Loss) fromLocal Taxing Jurisdictions 2012 ($50,000) $0 2013 ($600,000) ($150,000) 2014 ($700,000) ($200,000) 2015 ($700,000) ($200,000) 2016 ($750,000) ($200,000)
2012 ($50,000) $0
2013 ($600,000) ($150,000)
2014 ($700,000) ($200,000)
2015 ($700,000) ($200,000)
2016 ($750,000) ($200,000)
Fiscal Analysis
The bill would amend Chapter 151, Tax Code to add certain school art supplies to the definition of school supplies eligible for exemption during a limited period. The bill would amend Section 151.327(a)(2) to add a paintbrush used for artwork, watercolors, and acrylic, tempera, and oil paints to the items eligible for exemption. The bill would take effect immediately if it receives the requisite two-thirds votes in each house, otherwise it would take effect September 1, 2011.
Methodology
Census Bureau data, school art supply price data, Texas Education Agency data on enrollment in art classes, and Comptroller tax files data were used to develop an estimate of school art supply purchases that would occur within the annual August tax holiday, and the state sales tax rate applied to estimate the revenue impact. Effects on units of local government were estimated proportionally. If the bill were to receive immediate effect, the additional items would be eligible for exemption during the August 2011 tax holiday. This would principally impact fiscal 2012 revenues, but there would be some effect in fiscal 2011 due to estimated prepayments of tax. If the bill were to take effect September 1, 2011 the first affected tax holiday would be that of August 2012.
Local Government Impact
There would be a proportional loss of sales and use tax revenue to local taxing jurisdictions.
Source Agencies: 304 Comptroller of Public Accounts
304 Comptroller of Public Accounts
LBB Staff: JOB, KK, SD
JOB, KK, SD