LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 83RD LEGISLATIVE REGULAR SESSION April 26, 2013 TO: Honorable Harvey Hilderbran, Chair, House Committee on Ways & Means FROM: Ursula Parks, Director, Legislative Budget Board IN RE:HB2746 by Strama (Relating to exemptions from the sales and use tax for certain energy-efficient products.), As Introduced Estimated Two-year Net Impact to General Revenue Related Funds for HB2746, As Introduced: a negative impact of ($9,650,000) through the biennium ending August 31, 2015.
LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 83RD LEGISLATIVE REGULAR SESSION
April 26, 2013
TO: Honorable Harvey Hilderbran, Chair, House Committee on Ways & Means FROM: Ursula Parks, Director, Legislative Budget Board IN RE:HB2746 by Strama (Relating to exemptions from the sales and use tax for certain energy-efficient products.), As Introduced
TO: Honorable Harvey Hilderbran, Chair, House Committee on Ways & Means
FROM: Ursula Parks, Director, Legislative Budget Board
IN RE: HB2746 by Strama (Relating to exemptions from the sales and use tax for certain energy-efficient products.), 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
HB2746 by Strama (Relating to exemptions from the sales and use tax for certain energy-efficient products.), As Introduced
HB2746 by Strama (Relating to exemptions from the sales and use tax for certain energy-efficient products.), As Introduced
Estimated Two-year Net Impact to General Revenue Related Funds for HB2746, As Introduced: a negative impact of ($9,650,000) through the biennium ending August 31, 2015.
Estimated Two-year Net Impact to General Revenue Related Funds for HB2746, As Introduced: a negative impact of ($9,650,000) 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 ($4,760,000) 2015 ($4,890,000) 2016 ($5,020,000) 2017 ($5,160,000) 2018 ($5,300,000)
2014 ($4,760,000)
2015 ($4,890,000)
2016 ($5,020,000)
2017 ($5,160,000)
2018 ($5,300,000)
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 ($4,760,000) ($880,000) ($300,000) ($150,000) 2015 ($4,890,000) ($900,000) ($310,000) ($150,000) 2016 ($5,020,000) ($930,000) ($310,000) ($160,000) 2017 ($5,160,000) ($950,000) ($320,000) ($160,000) 2018 ($5,300,000) ($980,000) ($330,000) ($170,000)
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 ($4,760,000) ($880,000) ($300,000) ($150,000) 2015 ($4,890,000) ($900,000) ($310,000) ($150,000) 2016 ($5,020,000) ($930,000) ($310,000) ($160,000) 2017 ($5,160,000) ($950,000) ($320,000) ($160,000) 2018 ($5,300,000) ($980,000) ($330,000) ($170,000)
2014 ($4,760,000) ($880,000) ($300,000) ($150,000)
2015 ($4,890,000) ($900,000) ($310,000) ($150,000)
2016 ($5,020,000) ($930,000) ($310,000) ($160,000)
2017 ($5,160,000) ($950,000) ($320,000) ($160,000)
2018 ($5,300,000) ($980,000) ($330,000) ($170,000)
Fiscal Analysis
The bill would amend Chapter 151, Tax Code, to add additional items to the exemption of certain energy-efficient products for a limited period. Section 151.333(b) would be amended to increase the price limitation on an eligible air conditioner from $6,000 to $8,000, and to add to the list of eligible items to include a room air cleaner or purifier, home insulating and air sealing products, ductless heating and cooling equipment, a boiler, a furnace, an air source heat pump, and a geothermal heat pump. The bill would take effect September 1, 2013.
Methodology
National data on annual shipments of units of energy-star compliant items was apportioned to the state based on population and priced based on advertised retail prices, reduced to a portion expected to be sold within the exemption period, extrapolated through 2018 and multiplied by the state sales rate. Implications for units of local government were estimated proportionally.
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, KK, SD
UP, KK, SD