LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 82ND LEGISLATIVE REGULAR SESSION April 19, 2011 TO: Honorable John Carona, Chair, Senate Committee on Business & Commerce FROM: John S O'Brien, Director, Legislative Budget Board IN RE:SB1409 by Lucio (Relating to importation and shipment of alcoholic beverages for personal consumption.), As Introduced Estimated Two-year Net Impact to General Revenue Related Funds for SB1409, As Introduced: a positive impact of $3,039,718 through the biennium ending August 31, 2013.
LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 82ND LEGISLATIVE REGULAR SESSION
April 19, 2011
TO: Honorable John Carona, Chair, Senate Committee on Business & Commerce FROM: John S O'Brien, Director, Legislative Budget Board IN RE:SB1409 by Lucio (Relating to importation and shipment of alcoholic beverages for personal consumption.), As Introduced
TO: Honorable John Carona, Chair, Senate Committee on Business & Commerce
FROM: John S O'Brien, Director, Legislative Budget Board
IN RE: SB1409 by Lucio (Relating to importation and shipment of alcoholic beverages for personal consumption.), As Introduced
Honorable John Carona, Chair, Senate Committee on Business & Commerce
Honorable John Carona, Chair, Senate Committee on Business & Commerce
John S O'Brien, Director, Legislative Budget Board
John S O'Brien, Director, Legislative Budget Board
SB1409 by Lucio (Relating to importation and shipment of alcoholic beverages for personal consumption.), As Introduced
SB1409 by Lucio (Relating to importation and shipment of alcoholic beverages for personal consumption.), As Introduced
Estimated Two-year Net Impact to General Revenue Related Funds for SB1409, As Introduced: a positive impact of $3,039,718 through the biennium ending August 31, 2013.
Estimated Two-year Net Impact to General Revenue Related Funds for SB1409, As Introduced: a positive impact of $3,039,718 through the biennium ending August 31, 2013.
General Revenue-Related Funds, Five-Year Impact: Fiscal Year Probable Net Positive/(Negative) Impact to General Revenue Related Funds 2012 $1,513,484 2013 $1,526,234 2014 $1,526,234 2015 $1,526,234 2016 $1,526,234
2012 $1,513,484
2013 $1,526,234
2014 $1,526,234
2015 $1,526,234
2016 $1,526,234
All Funds, Five-Year Impact: Fiscal Year Probable Revenue Gain fromGeneral Revenue Fund1 Probable Savings/(Cost) fromGeneral Revenue Fund1 2012 $1,526,234 ($12,750) 2013 $1,526,234 2014 $1,526,234 2015 $1,526,234 2016 $1,526,234
Fiscal Year Probable Revenue Gain fromGeneral Revenue Fund1 Probable Savings/(Cost) fromGeneral Revenue Fund1 2012 $1,526,234 ($12,750) 2013 $1,526,234 2014 $1,526,234 2015 $1,526,234 2016 $1,526,234
2012 $1,526,234 ($12,750)
2013 $1,526,234
2014 $1,526,234
2015 $1,526,234
2016 $1,526,234
Fiscal Analysis
The bill would amend the Alcoholic Beverage Code by eliminating the distinction between a Texas resident and a nonresident of Texas as to limits of importations of alcoholic beverages for personal use. It would also increase the administrative fee charged on a container from $.50 to $1.00. This act takes effect on September 1, 2011.The bill would amend Section 107.07 (a) and (e) of the Alcoholic Beverage Code. Subsection (a) eliminates the distinction between a Texas resident and a nonresident of Texas as to limits of importations of alcoholic beverages for personal use. This bill increases the quantity allowed for Texas residents from one quart of distilled spirits to 1 gallon of distilled spirits. Current law allows persons to import alcoholic beverages for personal use without a permit if they pay the excise tax and administrative fee due on the alcoholic beverage. The bill would increase the administrative fee from $.50 per container to $1.00 per container. An increase in importations is expected due to the limit increase and will result in an increase in annual revenue of approximately $1,526,234 per year. The Comptroller of Public Accounts anticipates an increase in annual revenue of approximately $800,000 per year, based on applying the new administrative fee to the amounts in the 2012-13 Biennial Revenue Estimate.
Methodology
The Texas Alcoholic Beverage Commission estimates that allowing Texas residents to import the same amount of distilled spirits as a nonresident of Texas while at the same time increasing the administrative fee to $1.00 will result in a 10% reduction in all containers excluding 750ml, 1 liter, and 1.75 liter size containers of distilled spirits of which a 25% increase in estimated. The cost to general revenue for FY2012 would be $9,000 for printing new pamphlets and $3,750 for new signs at Ports of Entry locations.
Local Government Impact
No significant fiscal implication to units of local government is anticipated.
Source Agencies: 304 Comptroller of Public Accounts, 458 Alcoholic Beverage Commission
304 Comptroller of Public Accounts, 458 Alcoholic Beverage Commission
LBB Staff: JOB, AG, GG, DAR
JOB, AG, GG, DAR