LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 82ND LEGISLATIVE REGULAR SESSION March 13, 2011 TO: Honorable Steve Ogden, Chair, Senate Committee on Finance FROM: John S O'Brien, Director, Legislative Budget Board IN RE:SB52 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 SB52, As Introduced: a negative impact of ($58,600,000) through the biennium ending August 31, 2013, if the effective date of the bill is July 1, 2011; or a negative impact of ($45,500,000) through the biennium ending August 31, 2013, if the effective date of the bill is October 1, 2011. The following fiscal implications assume an effective date of July 1, 2011. General Revenue-Related Funds, Six-Year Impact: Fiscal Year Probable Net Positive/(Negative) Impact to General Revenue Related Funds 2011 ($4,200,000) 2012 ($26,600,000) 2013 ($27,800,000) 2014 ($29,000,000) 2015 ($30,500,000) 2016 ($32,000,000) General Revenue-Related Funds, Five-Year Impact: Fiscal Year Probable Net Positive/(Negative) Impact to General Revenue Related Funds 2012 ($17,700,000) 2013 ($27,800,000) 2014 ($29,000,000) 2015 ($30,500,000) 2016 ($32,000,000) 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 2011 ($4,200,000) $0 $0 $0 2012 ($26,600,000) ($5,200,000) ($1,600,000) ($900,000) 2013 ($27,800,000) ($5,400,000) ($1,700,000) ($900,000) 2014 ($29,000,000) ($5,600,000) ($1,800,000) ($1,000,000) 2015 ($30,500,000) ($5,900,000) ($1,900,000) ($1,000,000) 2016 ($32,000,000) ($6,200,000) ($1,900,000) ($1,100,000) The following fiscal implications assume an effective date of October 1, 2011. 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 2012 ($17,700,000) ($3,400,000) ($1,100,000) ($600,000) 2013 ($27,800,000) ($5,400,000) ($1,700,000) ($900,000) 2014 ($29,000,000) ($5,600,000) ($1,800,000) ($1,000,000) 2015 ($30,500,000) ($5,900,000) ($1,900,000) ($1,000,000) 2016 ($32,000,000) ($6,200,000) ($1,900,000) ($1,100,000) Fiscal Analysis SB 52 would amend Tax Code to exempt books from the sales tax when purchased by a student enrolled at a Texas institution of higher education. To qualify for the tax exemption, the sale must take place within a specified 10-day period each January and August. Eligibility would be established by presenting a valid student identification card. This bill would take effect July 1, 2011, if receiving a two-thirds vote in both houses of the Legislature. Otherwise, the bill would take effect October 1, 2011. Methodology The Comptroller of Public Accounts gathered data on the sale of books in Texas 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 the potential effective bill dates of July 1, 2011, and October 1, 2011; and extrapolated through fiscal 2016. Fiscal implications on units of local government were estimated proportionally. Local Government Impact Units of local government would experience a loss in 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 2011, in either effective date scenario, 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 LBB Staff: JOB, KK, JI, KY
LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 82ND LEGISLATIVE REGULAR SESSION
March 13, 2011
TO: Honorable Steve Ogden, Chair, Senate Committee on Finance FROM: John S O'Brien, Director, Legislative Budget Board IN RE:SB52 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: SB52 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
SB52 by Zaffirini (Relating to exempting books purchased by university and college students from the sales tax for a limited period.), As Introduced
SB52 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 SB52, As Introduced: a negative impact of ($58,600,000) through the biennium ending August 31, 2013, if the effective date of the bill is July 1, 2011; or a negative impact of ($45,500,000) through the biennium ending August 31, 2013, if the effective date of the bill is October 1, 2011.
Estimated Two-year Net Impact to General Revenue Related Funds for SB52, As Introduced: a negative impact of ($58,600,000) through the biennium ending August 31, 2013, if the effective date of the bill is July 1, 2011; or a negative impact of ($45,500,000) through the biennium ending August 31, 2013, if the effective date of the bill is October 1, 2011.
The following fiscal implications assume an effective date of July 1, 2011.
The following fiscal implications assume an effective date of July 1, 2011.
General Revenue-Related Funds, Six-Year Impact: Fiscal Year Probable Net Positive/(Negative) Impact to General Revenue Related Funds 2011 ($4,200,000) 2012 ($26,600,000) 2013 ($27,800,000) 2014 ($29,000,000) 2015 ($30,500,000) 2016 ($32,000,000)
2011 ($4,200,000)
2012 ($26,600,000)
2013 ($27,800,000)
2014 ($29,000,000)
2015 ($30,500,000)
2016 ($32,000,000)
General Revenue-Related Funds, Five-Year Impact: Fiscal Year Probable Net Positive/(Negative) Impact to General Revenue Related Funds 2012 ($17,700,000) 2013 ($27,800,000) 2014 ($29,000,000) 2015 ($30,500,000) 2016 ($32,000,000)
2012 ($17,700,000)
2013 ($27,800,000)
2014 ($29,000,000)
2015 ($30,500,000)
2016 ($32,000,000)
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 2011 ($4,200,000) $0 $0 $0 2012 ($26,600,000) ($5,200,000) ($1,600,000) ($900,000) 2013 ($27,800,000) ($5,400,000) ($1,700,000) ($900,000) 2014 ($29,000,000) ($5,600,000) ($1,800,000) ($1,000,000) 2015 ($30,500,000) ($5,900,000) ($1,900,000) ($1,000,000) 2016 ($32,000,000) ($6,200,000) ($1,900,000) ($1,100,000) The following fiscal implications assume an effective date of October 1, 2011. 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 2012 ($17,700,000) ($3,400,000) ($1,100,000) ($600,000) 2013 ($27,800,000) ($5,400,000) ($1,700,000) ($900,000) 2014 ($29,000,000) ($5,600,000) ($1,800,000) ($1,000,000) 2015 ($30,500,000) ($5,900,000) ($1,900,000) ($1,000,000) 2016 ($32,000,000) ($6,200,000) ($1,900,000) ($1,100,000) Fiscal Analysis SB 52 would amend Tax Code to exempt books from the sales tax when purchased by a student enrolled at a Texas institution of higher education. To qualify for the tax exemption, the sale must take place within a specified 10-day period each January and August. Eligibility would be established by presenting a valid student identification card. This bill would take effect July 1, 2011, if receiving a two-thirds vote in both houses of the Legislature. Otherwise, the bill would take effect October 1, 2011. Methodology The Comptroller of Public Accounts gathered data on the sale of books in Texas 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 the potential effective bill dates of July 1, 2011, and October 1, 2011; and extrapolated through fiscal 2016. Fiscal implications on units of local government were estimated proportionally. Local Government Impact Units of local government would experience a loss in 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 2011, in either effective date scenario, 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 LBB Staff: JOB, KK, JI, 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 2011 ($4,200,000) $0 $0 $0 2012 ($26,600,000) ($5,200,000) ($1,600,000) ($900,000) 2013 ($27,800,000) ($5,400,000) ($1,700,000) ($900,000) 2014 ($29,000,000) ($5,600,000) ($1,800,000) ($1,000,000) 2015 ($30,500,000) ($5,900,000) ($1,900,000) ($1,000,000) 2016 ($32,000,000) ($6,200,000) ($1,900,000) ($1,100,000)
2011 ($4,200,000) $0 $0 $0
2012 ($26,600,000) ($5,200,000) ($1,600,000) ($900,000)
2013 ($27,800,000) ($5,400,000) ($1,700,000) ($900,000)
2014 ($29,000,000) ($5,600,000) ($1,800,000) ($1,000,000)
2015 ($30,500,000) ($5,900,000) ($1,900,000) ($1,000,000)
2016 ($32,000,000) ($6,200,000) ($1,900,000) ($1,100,000)
The following fiscal implications assume an effective date of October 1, 2011.
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 2012 ($17,700,000) ($3,400,000) ($1,100,000) ($600,000) 2013 ($27,800,000) ($5,400,000) ($1,700,000) ($900,000) 2014 ($29,000,000) ($5,600,000) ($1,800,000) ($1,000,000) 2015 ($30,500,000) ($5,900,000) ($1,900,000) ($1,000,000) 2016 ($32,000,000) ($6,200,000) ($1,900,000) ($1,100,000) Fiscal Analysis SB 52 would amend Tax Code to exempt books from the sales tax when purchased by a student enrolled at a Texas institution of higher education. To qualify for the tax exemption, the sale must take place within a specified 10-day period each January and August. Eligibility would be established by presenting a valid student identification card. This bill would take effect July 1, 2011, if receiving a two-thirds vote in both houses of the Legislature. Otherwise, the bill would take effect October 1, 2011. Methodology The Comptroller of Public Accounts gathered data on the sale of books in Texas 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 the potential effective bill dates of July 1, 2011, and October 1, 2011; and extrapolated through fiscal 2016. Fiscal implications on units of local government were estimated proportionally.
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 2012 ($17,700,000) ($3,400,000) ($1,100,000) ($600,000) 2013 ($27,800,000) ($5,400,000) ($1,700,000) ($900,000) 2014 ($29,000,000) ($5,600,000) ($1,800,000) ($1,000,000) 2015 ($30,500,000) ($5,900,000) ($1,900,000) ($1,000,000) 2016 ($32,000,000) ($6,200,000) ($1,900,000) ($1,100,000)
2012 ($17,700,000) ($3,400,000) ($1,100,000) ($600,000)
2013 ($27,800,000) ($5,400,000) ($1,700,000) ($900,000)
2014 ($29,000,000) ($5,600,000) ($1,800,000) ($1,000,000)
2015 ($30,500,000) ($5,900,000) ($1,900,000) ($1,000,000)
2016 ($32,000,000) ($6,200,000) ($1,900,000) ($1,100,000)
Fiscal Analysis
SB 52 would amend Tax Code to exempt books from the sales tax when purchased by a student enrolled at a Texas institution of higher education. To qualify for the tax exemption, the sale must take place within a specified 10-day period each January and August. Eligibility would be established by presenting a valid student identification card. This bill would take effect July 1, 2011, if receiving a two-thirds vote in both houses of the Legislature. Otherwise, the bill would take effect October 1, 2011.
SB 52 would amend Tax Code to exempt books from the sales tax when purchased by a student enrolled at a Texas institution of higher education. To qualify for the tax exemption, the sale must take place within a specified 10-day period each January and August. Eligibility would be established by presenting a valid student identification card.
This bill would take effect July 1, 2011, if receiving a two-thirds vote in both houses of the Legislature. Otherwise, the bill would take effect October 1, 2011.
Methodology
The Comptroller of Public Accounts gathered data on the sale of books in Texas 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 the potential effective bill dates of July 1, 2011, and October 1, 2011; and extrapolated through fiscal 2016. Fiscal implications on units of local government were estimated proportionally.
The Comptroller of Public Accounts gathered data on the sale of books in Texas 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 the potential effective bill dates of July 1, 2011, and October 1, 2011; and extrapolated through fiscal 2016. Fiscal implications on units of local government were estimated proportionally.
Local Government Impact
Units of local government would experience a loss in 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 2011, in either effective date scenario, 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
304 Comptroller of Public Accounts
LBB Staff: JOB, KK, JI, KY
JOB, KK, JI, KY