LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 82ND LEGISLATIVE REGULAR SESSION March 28, 2011 TO: Honorable Steve Ogden, Chair, Senate Committee on Finance FROM: John S O'Brien, Director, Legislative Budget Board IN RE:SB776 by Zaffirini (Relating to customs brokers.), As Introduced Estimated Two-year Net Impact to General Revenue Related Funds for SB776, As Introduced: a positive impact of $6,300,000 through the biennium ending August 31, 2013.
LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 82ND LEGISLATIVE REGULAR SESSION
March 28, 2011
TO: Honorable Steve Ogden, Chair, Senate Committee on Finance FROM: John S O'Brien, Director, Legislative Budget Board IN RE:SB776 by Zaffirini (Relating to customs brokers.), As Introduced
TO: Honorable Steve Ogden, Chair, Senate Committee on Finance
FROM: John S O'Brien, Director, Legislative Budget Board
IN RE: SB776 by Zaffirini (Relating to customs brokers.), 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
SB776 by Zaffirini (Relating to customs brokers.), As Introduced
SB776 by Zaffirini (Relating to customs brokers.), As Introduced
Estimated Two-year Net Impact to General Revenue Related Funds for SB776, As Introduced: a positive impact of $6,300,000 through the biennium ending August 31, 2013.
Estimated Two-year Net Impact to General Revenue Related Funds for SB776, As Introduced: a positive impact of $6,300,000 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 $3,100,000 2013 $3,200,000 2014 $3,200,000 2015 $3,200,000 2016 $3,300,000
2012 $3,100,000
2013 $3,200,000
2014 $3,200,000
2015 $3,200,000
2016 $3,300,000
All Funds, Five-Year Impact: Fiscal Year Probable Revenue Gain fromGeneral Revenue Fund1 Probable Revenue Gain fromCities Probable Revenue Gain fromTransit Authorities 2012 $3,100,000 $200,000 $100,000 2013 $3,200,000 $200,000 $100,000 2014 $3,200,000 $200,000 $100,000 2015 $3,200,000 $200,000 $100,000 2016 $3,300,000 $200,000 $100,000
Fiscal Year Probable Revenue Gain fromGeneral Revenue Fund1 Probable Revenue Gain fromCities Probable Revenue Gain fromTransit Authorities 2012 $3,100,000 $200,000 $100,000 2013 $3,200,000 $200,000 $100,000 2014 $3,200,000 $200,000 $100,000 2015 $3,200,000 $200,000 $100,000 2016 $3,300,000 $200,000 $100,000
2012 $3,100,000 $200,000 $100,000
2013 $3,200,000 $200,000 $100,000
2014 $3,200,000 $200,000 $100,000
2015 $3,200,000 $200,000 $100,000
2016 $3,300,000 $200,000 $100,000
Fiscal Analysis
The bill would implement recommendations from the report, "Strengthen Sales Tax Enforcement Related to Customs Brokers and Increase the Charge for Export Stamps," in the Legislative Budget Board's (LBB) Government Effectiveness and Efficiency Report submitted to the Eighty-Second Texas Legislature, 2011. The bill would amend Chapter 151, Tax Code relating to customs brokers. The bill would eliminate the requirement that the comptroller provide an alternate method to show documentation of exemption of tangible personal property when the website for such documentation is unavailable. The bill would provide that the comptroller may suspend or revoke a customs broker license if the licensee does not comply with statute or issues false documentation. The bill would provide that a customs broker or authorized employee may issue or deliver documentation only for property that is listed on a single receipt, and that such documentation must include a declaration that the customs broker or authorized employee inspected the property and the original receipt for the property. The bill would increase the charge for each export stamp from $1.60 to $3.20. The bill would take effect September 1, 2011.
The bill would implement recommendations from the report, "Strengthen Sales Tax Enforcement Related to Customs Brokers and Increase the Charge for Export Stamps," in the Legislative Budget Board's (LBB) Government Effectiveness and Efficiency Report submitted to the Eighty-Second Texas Legislature, 2011.
The bill would amend Chapter 151, Tax Code relating to customs brokers. The bill would eliminate the requirement that the comptroller provide an alternate method to show documentation of exemption of tangible personal property when the website for such documentation is unavailable. The bill would provide that the comptroller may suspend or revoke a customs broker license if the licensee does not comply with statute or issues false documentation. The bill would provide that a customs broker or authorized employee may issue or deliver documentation only for property that is listed on a single receipt, and that such documentation must include a declaration that the customs broker or authorized employee inspected the property and the original receipt for the property. The bill would increase the charge for each export stamp from $1.60 to $3.20. The bill would take effect September 1, 2011.
Methodology
The estimated number of export certificates was adjusted to reflect the expected change from the elimination of the ability to combine multiple receipts for refund claims, multiplied by $3.20, and from this the amount of export stamp revenue expected under current law was subtracted to estimate the amount of revenue gain from the increase in the stamp fee. To this was added the gain from the reduction in refund claims associated with single receipts for small purchases that would not warrant refund requests. The bill would have no administrative cost.
The estimated number of export certificates was adjusted to reflect the expected change from the elimination of the ability to combine multiple receipts for refund claims, multiplied by $3.20, and from this the amount of export stamp revenue expected under current law was subtracted to estimate the amount of revenue gain from the increase in the stamp fee. To this was added the gain from the reduction in refund claims associated with single receipts for small purchases that would not warrant refund requests. The bill would have no administrative cost.
Technology
The bill would have no technological impact.
Local Government Impact
No significant fiscal implication to units counties and special districts.
Source Agencies: 304 Comptroller of Public Accounts
304 Comptroller of Public Accounts
LBB Staff: JOB, RS, KK, JI
JOB, RS, KK, JI