LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 83RD LEGISLATIVE REGULAR SESSION April 1, 2013 TO: Honorable Harvey Hilderbran, Chair, House Committee on Ways & Means FROM: Ursula Parks, Director, Legislative Budget Board IN RE:HB2451 by King, Tracy O. (Relating to the allowance of cost of goods sold deductions in connection with agricultural aircraft operation.), As Introduced Estimated Two-year Net Impact to General Revenue Related Funds for HB2451, As Introduced: an impact of $0 through the biennium ending August 31, 2015. Additionally, the bill will have a direct impact of a revenue loss to the Property Tax Relief Fund of ($274,000) for the 2014-15 biennium. Any loss to the Property Tax Relief Fund must be made up with an equal amount of General Revenue to fund the Foundation School Program.
LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 83RD LEGISLATIVE REGULAR SESSION
April 1, 2013
TO: Honorable Harvey Hilderbran, Chair, House Committee on Ways & Means FROM: Ursula Parks, Director, Legislative Budget Board IN RE:HB2451 by King, Tracy O. (Relating to the allowance of cost of goods sold deductions in connection with agricultural aircraft operation.), As Introduced
TO: Honorable Harvey Hilderbran, Chair, House Committee on Ways & Means
FROM: Ursula Parks, Director, Legislative Budget Board
IN RE: HB2451 by King, Tracy O. (Relating to the allowance of cost of goods sold deductions in connection with agricultural aircraft operation.), 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
HB2451 by King, Tracy O. (Relating to the allowance of cost of goods sold deductions in connection with agricultural aircraft operation.), As Introduced
HB2451 by King, Tracy O. (Relating to the allowance of cost of goods sold deductions in connection with agricultural aircraft operation.), As Introduced
Estimated Two-year Net Impact to General Revenue Related Funds for HB2451, As Introduced: an impact of $0 through the biennium ending August 31, 2015. Additionally, the bill will have a direct impact of a revenue loss to the Property Tax Relief Fund of ($274,000) for the 2014-15 biennium. Any loss to the Property Tax Relief Fund must be made up with an equal amount of General Revenue to fund the Foundation School Program.
Estimated Two-year Net Impact to General Revenue Related Funds for HB2451, As Introduced: an impact of $0 through the biennium ending August 31, 2015.
Additionally, the bill will have a direct impact of a revenue loss to the Property Tax Relief Fund of ($274,000) for the 2014-15 biennium. Any loss to the Property Tax Relief Fund must be made up with an equal amount of General Revenue to fund the Foundation School Program.
General Revenue-Related Funds, Five-Year Impact: Fiscal Year Probable Net Positive/(Negative) Impact to General Revenue Related Funds 2014 $0 2015 $0 2016 $0 2017 $0 2018 $0
2014 $0
2015 $0
2016 $0
2017 $0
2018 $0
All Funds, Five-Year Impact: Fiscal Year Probable Revenue (Loss) fromProperty Tax Relief Fund304 2014 ($137,000) 2015 ($137,000) 2016 ($140,000) 2017 ($137,000) 2018 ($136,000)
Fiscal Year Probable Revenue (Loss) fromProperty Tax Relief Fund304 2014 ($137,000) 2015 ($137,000) 2016 ($140,000) 2017 ($137,000) 2018 ($136,000)
2014 ($137,000)
2015 ($137,000)
2016 ($140,000)
2017 ($137,000)
2018 ($136,000)
Fiscal Analysis
The bill would amend Chapter 171 of the Tax Code, regarding the franchise tax, by adding a provision for a cost of goods sold deduction certain taxable entities. A taxable entity that furnishes labor or materials in connection with an agricultural aircraft operation would be considered the owner of the labor and materials and would include those costs in the calculation of cost of goods sold. The bill would take effect on January 1, 2014, and only apply to a report due on or after that date.
Methodology
The estimated fiscal impact is based on franchise tax data from taxable entities providing agricultural aviation services.
Local Government Impact
No 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