LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 83RD LEGISLATIVE REGULAR SESSION March 22, 2013 TO: Honorable Harvey Hilderbran, Chair, House Committee on Ways & Means FROM: Ursula Parks, Director, Legislative Budget Board IN RE:HB1660 by Thompson, Senfronia (Relating to the collection and reporting of municipal and other local governmental entity sales and use taxes.), As Introduced No significant fiscal implication to the State is anticipated. The bill would amend Chapter 321 of the Tax Code, regarding the municipal sales and use tax. The bill would provide a definition for tax delinquency within this chapter. A tax would be delinquent if a person fails to correctly collect and remit to the Comptroller all or part of the tax due to the appropriate municipality or other local governmental entity, or incorrectly reports to the Comptroller the municipality or other local governmental entity in which a sale occurred. This bill would take effect immediately upon enactment, assuming that it received the requisite two-thirds majority votes in both houses of the Legislature. Otherwise, it would take effect September 1, 2013. The bill could increase the number of taxpayers that would be considered delinquent, and could result in an increase in penalties and fines. The number of potential taxpayers found to be delinquent and the amount of fines and penalties is unknown. In fiscal year 2012 the reallocation of municipal sales and use tax was less than one-tenth of one percent of the total allocations made by the Comptroller. Accordingly, there would be no significant fiscal impact. The Comptroller indicates they would need to hire two FTEs to establish processes, determine allocation and penalty amounts, and to perform taxpayer education. Local Government Impact No significant fiscal implication to units of local government is anticipated. Source Agencies:304 Comptroller of Public Accounts LBB Staff: UP, KK, SD
LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 83RD LEGISLATIVE REGULAR SESSION
March 22, 2013
TO: Honorable Harvey Hilderbran, Chair, House Committee on Ways & Means FROM: Ursula Parks, Director, Legislative Budget Board IN RE:HB1660 by Thompson, Senfronia (Relating to the collection and reporting of municipal and other local governmental entity sales and use taxes.), As Introduced
TO: Honorable Harvey Hilderbran, Chair, House Committee on Ways & Means
FROM: Ursula Parks, Director, Legislative Budget Board
IN RE: HB1660 by Thompson, Senfronia (Relating to the collection and reporting of municipal and other local governmental entity sales and use taxes.), 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
HB1660 by Thompson, Senfronia (Relating to the collection and reporting of municipal and other local governmental entity sales and use taxes.), As Introduced
HB1660 by Thompson, Senfronia (Relating to the collection and reporting of municipal and other local governmental entity sales and use taxes.), As Introduced
No significant fiscal implication to the State is anticipated.
No significant fiscal implication to the State is anticipated.
The bill would amend Chapter 321 of the Tax Code, regarding the municipal sales and use tax. The bill would provide a definition for tax delinquency within this chapter. A tax would be delinquent if a person fails to correctly collect and remit to the Comptroller all or part of the tax due to the appropriate municipality or other local governmental entity, or incorrectly reports to the Comptroller the municipality or other local governmental entity in which a sale occurred. This bill would take effect immediately upon enactment, assuming that it received the requisite two-thirds majority votes in both houses of the Legislature. Otherwise, it would take effect September 1, 2013. The bill could increase the number of taxpayers that would be considered delinquent, and could result in an increase in penalties and fines. The number of potential taxpayers found to be delinquent and the amount of fines and penalties is unknown. In fiscal year 2012 the reallocation of municipal sales and use tax was less than one-tenth of one percent of the total allocations made by the Comptroller. Accordingly, there would be no significant fiscal impact. The Comptroller indicates they would need to hire two FTEs to establish processes, determine allocation and penalty amounts, and to perform taxpayer education.
The bill would amend Chapter 321 of the Tax Code, regarding the municipal sales and use tax. The bill would provide a definition for tax delinquency within this chapter. A tax would be delinquent if a person fails to correctly collect and remit to the Comptroller all or part of the tax due to the appropriate municipality or other local governmental entity, or incorrectly reports to the Comptroller the municipality or other local governmental entity in which a sale occurred. This bill would take effect immediately upon enactment, assuming that it received the requisite two-thirds majority votes in both houses of the Legislature. Otherwise, it would take effect September 1, 2013.
The bill could increase the number of taxpayers that would be considered delinquent, and could result in an increase in penalties and fines. The number of potential taxpayers found to be delinquent and the amount of fines and penalties is unknown. In fiscal year 2012 the reallocation of municipal sales and use tax was less than one-tenth of one percent of the total allocations made by the Comptroller. Accordingly, there would be no significant fiscal impact.
The Comptroller indicates they would need to hire two FTEs to establish processes, determine allocation and penalty amounts, and to perform taxpayer education.
Local Government Impact
No significant fiscal implication to units of local government is anticipated.
Source Agencies: 304 Comptroller of Public Accounts
304 Comptroller of Public Accounts
LBB Staff: UP, KK, SD
UP, KK, SD