LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 83RD LEGISLATIVE REGULAR SESSION April 9, 2013 TO: Honorable Harvey Hilderbran, Chair, House Committee on Ways & Means FROM: Ursula Parks, Director, Legislative Budget Board IN RE:HB1133 by Otto (Relating to a sales and use tax exemption for tangible personal property used to provide cable television service, Internet access service, or telecommunications services and to the exclusion of that property in certain economic development agreements.), As Introduced Estimated Two-year Net Impact to General Revenue Related Funds for HB1133, As Introduced: a negative impact of ($885,100,000) through the biennium ending August 31, 2015.
LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 83RD LEGISLATIVE REGULAR SESSION
April 9, 2013
TO: Honorable Harvey Hilderbran, Chair, House Committee on Ways & Means FROM: Ursula Parks, Director, Legislative Budget Board IN RE:HB1133 by Otto (Relating to a sales and use tax exemption for tangible personal property used to provide cable television service, Internet access service, or telecommunications services and to the exclusion of that property in certain economic development agreements.), As Introduced
TO: Honorable Harvey Hilderbran, Chair, House Committee on Ways & Means
FROM: Ursula Parks, Director, Legislative Budget Board
IN RE: HB1133 by Otto (Relating to a sales and use tax exemption for tangible personal property used to provide cable television service, Internet access service, or telecommunications services and to the exclusion of that property in certain economic development agreements.), As Introduced
Honorable Harvey Hilderbran, Chair, House Committee on Ways & Means
Honorable Harvey Hilderbran, Chair, House Committee on Ways & Means
Ursula Parks, Director, Legislative Budget Board
Ursula Parks, Director, Legislative Budget Board
HB1133 by Otto (Relating to a sales and use tax exemption for tangible personal property used to provide cable television service, Internet access service, or telecommunications services and to the exclusion of that property in certain economic development agreements.), As Introduced
HB1133 by Otto (Relating to a sales and use tax exemption for tangible personal property used to provide cable television service, Internet access service, or telecommunications services and to the exclusion of that property in certain economic development agreements.), As Introduced
Estimated Two-year Net Impact to General Revenue Related Funds for HB1133, As Introduced: a negative impact of ($885,100,000) through the biennium ending August 31, 2015.
Estimated Two-year Net Impact to General Revenue Related Funds for HB1133, As Introduced: a negative impact of ($885,100,000) through the biennium ending August 31, 2015.
General Revenue-Related Funds, Five-Year Impact: Fiscal Year Probable Net Positive/(Negative) Impact to General Revenue Related Funds 2014 ($413,600,000) 2015 ($471,500,000) 2016 ($492,700,000) 2017 ($514,900,000) 2018 ($538,100,000)
2014 ($413,600,000)
2015 ($471,500,000)
2016 ($492,700,000)
2017 ($514,900,000)
2018 ($538,100,000)
All Funds, Five-Year Impact: Fiscal Year Probable Revenue (Loss) fromGeneral Revenue Fund1 Probable Revenue (Loss) fromCities Probable Revenue (Loss) fromTransit Authorities Probable Revenue (Loss) fromCounties and Special Districts 2014 ($413,600,000) ($76,300,000) ($25,900,000) ($13,000,000) 2015 ($471,500,000) ($87,000,000) ($29,500,000) ($14,800,000) 2016 ($492,700,000) ($90,900,000) ($30,900,000) ($15,500,000) 2017 ($514,900,000) ($95,000,000) ($32,300,000) ($16,200,000) 2018 ($538,100,000) ($99,300,000) ($33,700,000) ($16,900,000)
Fiscal Year Probable Revenue (Loss) fromGeneral Revenue Fund1 Probable Revenue (Loss) fromCities Probable Revenue (Loss) fromTransit Authorities Probable Revenue (Loss) fromCounties and Special Districts 2014 ($413,600,000) ($76,300,000) ($25,900,000) ($13,000,000) 2015 ($471,500,000) ($87,000,000) ($29,500,000) ($14,800,000) 2016 ($492,700,000) ($90,900,000) ($30,900,000) ($15,500,000) 2017 ($514,900,000) ($95,000,000) ($32,300,000) ($16,200,000) 2018 ($538,100,000) ($99,300,000) ($33,700,000) ($16,900,000)
2014 ($413,600,000) ($76,300,000) ($25,900,000) ($13,000,000)
2015 ($471,500,000) ($87,000,000) ($29,500,000) ($14,800,000)
2016 ($492,700,000) ($90,900,000) ($30,900,000) ($15,500,000)
2017 ($514,900,000) ($95,000,000) ($32,300,000) ($16,200,000)
2018 ($538,100,000) ($99,300,000) ($33,700,000) ($16,900,000)
Fiscal Analysis
The bill would amend Chapters 151 and 313, Tax Code, in relation to taxation of certain property used to provide cable television service, internet access service, and telecommunications service. A new Section 151.3186 would be added to provide for exemption from sales and use tax of tangible personal property directly used or consumed in or during the provision, creation, or production of cable television service, internet access service, or telecommunications services by the service provider or a subsidiary, affiliate, or partner of the service provider. Section 313.021(2) would be amended to exclude property exempt under Section 151.3186 from a limitation on appraised value in an economic development agreement under Chapter 313. The bill would take effect September 1, 2013.
Methodology
Census Bureau data on telecommunications industry national capital expenditures on equipment and noncapitalized equipment and software expenditures was apportioned to Texas based on population, multiplied by the state sales tax rate, extrapolated through the forecast period, and adjusted for the effective date.
Local Government Impact
There would be a proportional loss of sales and use tax revenue to local taxing jurisdictions.
Source Agencies: 304 Comptroller of Public Accounts
304 Comptroller of Public Accounts
LBB Staff: UP, KK, SD
UP, KK, SD