LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 82ND LEGISLATIVE REGULAR SESSION March 14, 2011 TO: Honorable John Carona, Chair, Senate Committee on Business & Commerce FROM: John S O'Brien, Director, Legislative Budget Board IN RE:SB576 by Eltife (Relating to reports filed with the comptroller regarding certain alcoholic beverage sales.), As Introduced Estimated Two-year Net Impact to General Revenue Related Funds for SB576, As Introduced: a positive impact of $4,388,000 through the biennium ending August 31, 2013.
LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 82ND LEGISLATIVE REGULAR SESSION
March 14, 2011
TO: Honorable John Carona, Chair, Senate Committee on Business & Commerce FROM: John S O'Brien, Director, Legislative Budget Board IN RE:SB576 by Eltife (Relating to reports filed with the comptroller regarding certain alcoholic beverage sales.), As Introduced
TO: Honorable John Carona, Chair, Senate Committee on Business & Commerce
FROM: John S O'Brien, Director, Legislative Budget Board
IN RE: SB576 by Eltife (Relating to reports filed with the comptroller regarding certain alcoholic beverage sales.), 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
SB576 by Eltife (Relating to reports filed with the comptroller regarding certain alcoholic beverage sales.), As Introduced
SB576 by Eltife (Relating to reports filed with the comptroller regarding certain alcoholic beverage sales.), As Introduced
Estimated Two-year Net Impact to General Revenue Related Funds for SB576, As Introduced: a positive impact of $4,388,000 through the biennium ending August 31, 2013.
Estimated Two-year Net Impact to General Revenue Related Funds for SB576, As Introduced: a positive impact of $4,388,000 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 $1,200,000 2013 $3,188,000 2014 $4,974,000 2015 $5,173,000 2016 $5,380,000
2012 $1,200,000
2013 $3,188,000
2014 $4,974,000
2015 $5,173,000
2016 $5,380,000
All Funds, Five-Year Impact: Fiscal Year Probable Revenue Gain/(Loss) fromGeneral Revenue Fund1 Probable Revenue Gain/(Loss) fromCounties Probable Revenue Gain/(Loss) fromCities 2012 $1,200,000 $162,000 $150,000 2013 $3,188,000 $430,000 $398,000 2014 $4,974,000 $670,000 $620,000 2015 $5,173,000 $697,000 $645,000 2016 $5,380,000 $725,000 $671,000
Fiscal Year Probable Revenue Gain/(Loss) fromGeneral Revenue Fund1 Probable Revenue Gain/(Loss) fromCounties Probable Revenue Gain/(Loss) fromCities 2012 $1,200,000 $162,000 $150,000 2013 $3,188,000 $430,000 $398,000 2014 $4,974,000 $670,000 $620,000 2015 $5,173,000 $697,000 $645,000 2016 $5,380,000 $725,000 $671,000
2012 $1,200,000 $162,000 $150,000
2013 $3,188,000 $430,000 $398,000
2014 $4,974,000 $670,000 $620,000
2015 $5,173,000 $697,000 $645,000
2016 $5,380,000 $725,000 $671,000
Fiscal Analysis
The bill would amend Section 151.433 of the Tax Code, regarding reports by wholesalers and distributors of beer, wine and malt liquor. The bill would expand the list of persons required by the Comptroller's Office to file a monthly report on alcoholic beverage sales made to retailers to include a person holding a package store permit who also holds a local distributors permit. The bill would require wholesalers and distributors in their monthly reports for alcoholic beverage sales to retailers to also provide information on the size and brand of the products sold, and would require wholesalers and distributors of distilled spirits (i.e. liquor) to provide these monthly reports. The bill would expand the definition of a retailer for purposes of this section to include the holder of a temporary and special wine and beer retailers permit; a mixed beverage permit; a daily temporary mixed beverage permit; and a private club registration permit. The bill would amend Chapter 111 of the Tax Code, regarding collection procedures for state taxes, to require the Comptrollers Office to disclose information from the sales reports required under Section 151.462 of this Code (as amended by this bill). This bill would take effect September 1, 2011.
Methodology
The Comptroller of Public Accounts (CPA) estimates the bill's provisions would increase collections from the mixed beverage tax due to an increase in the effectiveness of the audit selection process. Gains would be reflected in both revenue realized per audit and an increase in the percentage of mixed beverage audits yielding revenue. Additionally, in response to enhanced reporting requirements, there would be a revenue gain due to greater voluntary tax compliance.
The Comptroller of Public Accounts (CPA) estimates the bill's provisions would increase collections from the mixed beverage tax due to an increase in the effectiveness of the audit selection process. Gains would be reflected in both revenue realized per audit and an increase in the percentage of mixed beverage audits yielding revenue. Additionally, in response to enhanced reporting requirements, there would be a revenue gain due to greater voluntary tax compliance.
Local Government Impact
Cities and counties could expect positive revenue gains. This analysis shows the estimated gains tocities and counties if they were to be appropriated their current share of total mixed beverage revenue.
Source Agencies: 304 Comptroller of Public Accounts, 458 Alcoholic Beverage Commission
304 Comptroller of Public Accounts, 458 Alcoholic Beverage Commission
LBB Staff: JOB, AG
JOB, AG