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:HB3703 by Raymond (Relating to the use of certain aviation and air transportation-related tax proceeds for aviation facilities development.), As Introduced Estimated Two-year Net Impact to General Revenue Related Funds for HB3703, As Introduced: a negative impact of ($166,000,000) through the biennium ending August 31, 2013. Additionally, there is estimated to be a revenue loss of ($15,600,000) to the Property Tax Relief Fund. Any loss to this fund will have to be made up with GR of the same amount.
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:HB3703 by Raymond (Relating to the use of certain aviation and air transportation-related tax proceeds for aviation facilities development.), As Introduced
TO: Honorable Harvey Hilderbran, Chair, House Committee on Ways & Means
FROM: John S O'Brien, Director, Legislative Budget Board
IN RE: HB3703 by Raymond (Relating to the use of certain aviation and air transportation-related tax proceeds for aviation facilities development.), 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
HB3703 by Raymond (Relating to the use of certain aviation and air transportation-related tax proceeds for aviation facilities development.), As Introduced
HB3703 by Raymond (Relating to the use of certain aviation and air transportation-related tax proceeds for aviation facilities development.), As Introduced
Estimated Two-year Net Impact to General Revenue Related Funds for HB3703, As Introduced: a negative impact of ($166,000,000) through the biennium ending August 31, 2013. Additionally, there is estimated to be a revenue loss of ($15,600,000) to the Property Tax Relief Fund. Any loss to this fund will have to be made up with GR of the same amount.
Estimated Two-year Net Impact to General Revenue Related Funds for HB3703, As Introduced: a negative impact of ($166,000,000) through the biennium ending August 31, 2013. Additionally, there is estimated to be a revenue loss of ($15,600,000) to the Property Tax Relief Fund. Any loss to this fund will have to be made up with GR of the same amount.
Estimated Two-year Net Impact to General Revenue Related Funds for HB3703, As Introduced: a negative impact of ($166,000,000) through the biennium ending August 31, 2013.
Additionally, there is estimated to be a revenue loss of ($15,600,000) to the Property Tax Relief Fund. Any loss to this fund will have to be made up with GR of the same amount.
General Revenue-Related Funds, Five-Year Impact: Fiscal Year Probable Net Positive/(Negative) Impact to General Revenue Related Funds 2012 ($81,200,000) 2013 ($84,800,000) 2014 ($88,600,000) 2015 ($93,200,000) 2016 ($97,600,000)
2012 ($81,200,000)
2013 ($84,800,000)
2014 ($88,600,000)
2015 ($93,200,000)
2016 ($97,600,000)
All Funds, Five-Year Impact: Fiscal Year Probable Revenue (Loss) fromGeneral Revenue Fund1 Probable Revenue (Loss) fromProperty Tax Relief Fund304 Probable Revenue Gain fromAviation Development 2012 ($81,200,000) ($7,700,000) $88,900,000 2013 ($84,800,000) ($7,900,000) $92,700,000 2014 ($88,600,000) ($8,100,000) $96,700,000 2015 ($93,200,000) ($8,100,000) $101,300,000 2016 ($97,600,000) ($8,200,000) $105,800,000
Fiscal Year Probable Revenue (Loss) fromGeneral Revenue Fund1 Probable Revenue (Loss) fromProperty Tax Relief Fund304 Probable Revenue Gain fromAviation Development 2012 ($81,200,000) ($7,700,000) $88,900,000 2013 ($84,800,000) ($7,900,000) $92,700,000 2014 ($88,600,000) ($8,100,000) $96,700,000 2015 ($93,200,000) ($8,100,000) $101,300,000 2016 ($97,600,000) ($8,200,000) $105,800,000
2012 ($81,200,000) ($7,700,000) $88,900,000
2013 ($84,800,000) ($7,900,000) $92,700,000
2014 ($88,600,000) ($8,100,000) $96,700,000
2015 ($93,200,000) ($8,100,000) $101,300,000
2016 ($97,600,000) ($8,200,000) $105,800,000
Fiscal Analysis
This bill would amend Chapters 151 and 171 of the Tax Code regarding the use of certain aviation and air transportation-related tax proceeds. The bill would direct that certain taxes related to aviation be deposited to the new GR AccountAviation Development. These taxes include the tax collected under Chapter 151 of the Tax Code by an airline as well as revenues from sales taxes imposed on an airline, the sale or use of aircraft or an aircraft part or accessory, the rental of an aircraft, and the sale of taxable items sold at airports. The bill would also direct that the revenue from the tax imposed on airlines under Chapter 171 to be deposited to the new GR Account. The bill would require the Comptroller to determine the amount to be deposited to the new account. The bill would add new Section 21.1045 to the Transportation Code, to create new GR AccountAviation Development. The new account would be composed of deposits made to the account, transfers to the account, and interest earned on money in the account. The bill would require that money in the account be only used to make loans and grants for aviation facilities development. The account would be exempt from Section 403.095 of the Government Code. The bill would create or recreate a dedicated account in the General Revenue Fund, create or recreate a special or trust fund either with or outside of the Treasury, or create a dedicated revenue source. The fund, account, or revenue dedication included in this bill would be subject to funds consolidation review by the current Legislature. This bill would take effect September 1, 2011.
This bill would amend Chapters 151 and 171 of the Tax Code regarding the use of certain aviation and air transportation-related tax proceeds. The bill would direct that certain taxes related to aviation be deposited to the new GR AccountAviation Development. These taxes include the tax collected under Chapter 151 of the Tax Code by an airline as well as revenues from sales taxes imposed on an airline, the sale or use of aircraft or an aircraft part or accessory, the rental of an aircraft, and the sale of taxable items sold at airports. The bill would also direct that the revenue from the tax imposed on airlines under Chapter 171 to be deposited to the new GR Account. The bill would require the Comptroller to determine the amount to be deposited to the new account. The bill would add new Section 21.1045 to the Transportation Code, to create new GR AccountAviation Development. The new account would be composed of deposits made to the account, transfers to the account, and interest earned on money in the account. The bill would require that money in the account be only used to make loans and grants for aviation facilities development. The account would be exempt from Section 403.095 of the Government Code.
The bill would create or recreate a dedicated account in the General Revenue Fund, create or recreate a special or trust fund either with or outside of the Treasury, or create a dedicated revenue source. The fund, account, or revenue dedication included in this bill would be subject to funds consolidation review by the current Legislature. This bill would take effect September 1, 2011.
Methodology
The data used to estimate the fiscal impact of the bill was obtained from Comptroller tax files and the U.S. Census Bureau. The loss from General Revenue Fund 0001 was combined with the loss from Property Tax Relief Fund 0304 to calculate the offsetting gain in new Aviation Development.
Local Government Impact
No fiscal implication to units of local government is anticipated.
Source Agencies: 304 Comptroller of Public Accounts
304 Comptroller of Public Accounts
LBB Staff: JOB, KK, SD
JOB, KK, SD