LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 83RD LEGISLATIVE REGULAR SESSION April 16, 2013 TO: Honorable Harvey Hilderbran, Chair, House Committee on Ways & Means FROM: Ursula Parks, Director, Legislative Budget Board IN RE:HB178 by Larson (Relating to exemption from the sales tax for certain water efficient products for a limited period.), As Introduced Estimated Two-year Net Impact to General Revenue Related Funds for HB178, As Introduced: a negative impact of ($2,640,000) through the biennium ending August 31, 2015.
LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 83RD LEGISLATIVE REGULAR SESSION
April 16, 2013
TO: Honorable Harvey Hilderbran, Chair, House Committee on Ways & Means FROM: Ursula Parks, Director, Legislative Budget Board IN RE:HB178 by Larson (Relating to exemption from the sales tax for certain water efficient products for a limited period.), As Introduced
TO: Honorable Harvey Hilderbran, Chair, House Committee on Ways & Means
FROM: Ursula Parks, Director, Legislative Budget Board
IN RE: HB178 by Larson (Relating to exemption from the sales tax for certain water efficient products for a limited period.), 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
HB178 by Larson (Relating to exemption from the sales tax for certain water efficient products for a limited period.), As Introduced
HB178 by Larson (Relating to exemption from the sales tax for certain water efficient products for a limited period.), As Introduced
Estimated Two-year Net Impact to General Revenue Related Funds for HB178, As Introduced: a negative impact of ($2,640,000) through the biennium ending August 31, 2015.
Estimated Two-year Net Impact to General Revenue Related Funds for HB178, As Introduced: a negative impact of ($2,640,000) 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 ($1,291,000) 2015 ($1,349,000) 2016 ($1,403,000) 2017 ($1,459,000) 2018 ($1,517,000)
2014 ($1,291,000)
2015 ($1,349,000)
2016 ($1,403,000)
2017 ($1,459,000)
2018 ($1,517,000)
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 ($1,291,000) ($239,000) ($83,000) ($41,000) 2015 ($1,349,000) ($250,000) ($86,000) ($43,000) 2016 ($1,403,000) ($260,000) ($90,000) ($45,000) 2017 ($1,459,000) ($270,000) ($93,000) ($47,000) 2018 ($1,517,000) ($281,000) ($97,000) ($49,000)
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 ($1,291,000) ($239,000) ($83,000) ($41,000) 2015 ($1,349,000) ($250,000) ($86,000) ($43,000) 2016 ($1,403,000) ($260,000) ($90,000) ($45,000) 2017 ($1,459,000) ($270,000) ($93,000) ($47,000) 2018 ($1,517,000) ($281,000) ($97,000) ($49,000)
2014 ($1,291,000) ($239,000) ($83,000) ($41,000)
2015 ($1,349,000) ($250,000) ($86,000) ($43,000)
2016 ($1,403,000) ($260,000) ($90,000) ($45,000)
2017 ($1,459,000) ($270,000) ($93,000) ($47,000)
2018 ($1,517,000) ($281,000) ($97,000) ($49,000)
Fiscal Analysis
This bill would amend Chapter 151 of the Tax Code, regarding the sales and use tax, to provide for a sales tax holiday for certain water efficient products. The bill would add new Section 151.3335 to provide that the sale of a "WaterSense product" as certified under the U.S. EPA WaterSense program would be exempt from the sales and use tax during the period beginning at 12:01 a.m. on the Saturday preceding the last Monday in May (Memorial Day) and ending at 11:59 p.m. on the last Monday in May. The bill would take effect July 1, 2013 if passed by two-thirds votes of the membership of each house, otherwise it would take effect October 1, 2013.
This bill would amend Chapter 151 of the Tax Code, regarding the sales and use tax, to provide for a sales tax holiday for certain water efficient products.
The bill would add new Section 151.3335 to provide that the sale of a "WaterSense product" as certified under the U.S. EPA WaterSense program would be exempt from the sales and use tax during the period beginning at 12:01 a.m. on the Saturday preceding the last Monday in May (Memorial Day) and ending at 11:59 p.m. on the last Monday in May.
The bill would take effect July 1, 2013 if passed by two-thirds votes of the membership of each house, otherwise it would take effect October 1, 2013.
Methodology
Data were gathered from Comptroller tax files regarding the amount of taxable sales made by certain retailers selling the products subject to the provisions of the bill. An adjustment was made to estimate their share of sales for the subject items and for the time period, multiplied by the tax rate, and extrapolated through fiscal 2018. The fiscal impacts on units of local government were estimated proportionally. The fiscal impacts would be the same whether the bill takes effect July 1 or October 1, 2013.
Local Government Impact
There would be a corresponding 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, PM, KK, SD
UP, PM, KK, SD