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:HB357 by Giddings (Relating to the exemption from the sales tax for certain school art supplies during limited periods.), As Introduced Estimated Two-year Net Impact to General Revenue Related Funds for HB357, As Introduced: a negative impact of ($1,350,000) through the biennium ending August 31, 2015, if the bill becomes effective immediately; or a negative impact of ($650,000) through the biennium ending August 31, 2015, if the effective date of the bill is September 1, 2013.
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:HB357 by Giddings (Relating to the exemption from the sales tax for certain school art supplies during limited periods.), As Introduced
TO: Honorable Harvey Hilderbran, Chair, House Committee on Ways & Means
FROM: Ursula Parks, Director, Legislative Budget Board
IN RE: HB357 by Giddings (Relating to the exemption from the sales tax for certain school art supplies during limited periods.), 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
HB357 by Giddings (Relating to the exemption from the sales tax for certain school art supplies during limited periods.), As Introduced
HB357 by Giddings (Relating to the exemption from the sales tax for certain school art supplies during limited periods.), As Introduced
Estimated Two-year Net Impact to General Revenue Related Funds for HB357, As Introduced: a negative impact of ($1,350,000) through the biennium ending August 31, 2015, if the bill becomes effective immediately; or a negative impact of ($650,000) through the biennium ending August 31, 2015, if the effective date of the bill is September 1, 2013.
Estimated Two-year Net Impact to General Revenue Related Funds for HB357, As Introduced: a negative impact of ($1,350,000) through the biennium ending August 31, 2015, if the bill becomes effective immediately; or a negative impact of ($650,000) through the biennium ending August 31, 2015, if the effective date of the bill is September 1, 2013.
General Revenue-Related Funds, Six-Year Impact: Fiscal Year Probable Net Positive/(Negative) Impact to General Revenue Related Funds 2013 ($100,000) 2014 ($600,000) 2015 ($650,000) 2016 ($700,000) 2017 ($700,000) 2018 ($750,000)
2013 ($100,000)
2014 ($600,000)
2015 ($650,000)
2016 ($700,000)
2017 ($700,000)
2018 ($750,000)
General Revenue-Related Funds, Five-Year Impact: Fiscal Year Probable Net Positive/(Negative) Impact to General Revenue Related Funds 2014 ($50,000) 2015 ($600,000) 2016 ($700,000) 2017 ($700,000) 2018 ($750,000)
2014 ($50,000)
2015 ($600,000)
2016 ($700,000)
2017 ($700,000)
2018 ($750,000)
All Funds, Six-Year Impact: Fiscal Year Probable Revenue (Loss) fromGeneral Revenue Fund1 Probable Revenue (Loss) fromCities Probable Revenue (Loss) fromTransit Authorities 2013 ($100,000) $0 $0 2014 ($600,000) ($100,000) ($50,000) 2015 ($650,000) ($150,000) ($50,000) 2016 ($700,000) ($150,000) ($50,000) 2017 ($700,000) ($150,000) ($50,000) 2018 ($750,000) ($150,000) ($50,000) The above table assumes immediate enactment of the bill. The table below assumes an effective date of September 1, 2013. Fiscal Year Probable Revenue (Loss) fromGeneral Revenue Fund1 Probable Revenue (Loss) fromCities Probable Revenue (Loss) fromTransit Authorities 2014 ($50,000) $0 $0 2015 ($600,000) ($100,000) ($50,000) 2016 ($700,000) ($150,000) ($50,000) 2017 ($700,000) ($150,000) ($50,000) 2018 ($750,000) ($150,000) ($50,000) Fiscal Analysis The bill would amend Chapter 151, Tax Code to add certain school art supplies to the definition of school supplies eligible for exemption during a limited period. The bill would amend Section 151.327(a)(2) to add a paintbrush used for artwork, watercolors, and acrylic, tempera, and oil paints to the items eligible for exemption. The bill would take effect immediately if it receives the requisite two-thirds votes in each house, otherwise it would take effect September 1, 2013. Methodology Census Bureau data, school art supply price data, Texas Education Agency data on enrollment in art classes, and Comptroller tax files data was used to develop an estimate of school art supply purchases that would occur within the annual August tax holiday, and the state sales tax rate applied to estimate the revenue impact. Effects on units of local government were estimated proportionally. If the bill were to receive immediate effect, the additional items would be eligible for exemption during the August 2013 tax holiday. This would principally impact fiscal 2014 revenues, but there would be some effect in fiscal 2013 due to estimated prepayments of tax. If the bill were to take effect September 1, 2013 the first affected tax holiday would be that of August 2014. 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 LBB Staff: UP, KK, SD
Fiscal Year Probable Revenue (Loss) fromGeneral Revenue Fund1 Probable Revenue (Loss) fromCities Probable Revenue (Loss) fromTransit Authorities 2013 ($100,000) $0 $0 2014 ($600,000) ($100,000) ($50,000) 2015 ($650,000) ($150,000) ($50,000) 2016 ($700,000) ($150,000) ($50,000) 2017 ($700,000) ($150,000) ($50,000) 2018 ($750,000) ($150,000) ($50,000)
2013 ($100,000) $0 $0
2014 ($600,000) ($100,000) ($50,000)
2015 ($650,000) ($150,000) ($50,000)
2016 ($700,000) ($150,000) ($50,000)
2017 ($700,000) ($150,000) ($50,000)
2018 ($750,000) ($150,000) ($50,000)
The above table assumes immediate enactment of the bill. The table below assumes an effective date of September 1, 2013.
Fiscal Year Probable Revenue (Loss) fromGeneral Revenue Fund1 Probable Revenue (Loss) fromCities Probable Revenue (Loss) fromTransit Authorities 2014 ($50,000) $0 $0 2015 ($600,000) ($100,000) ($50,000) 2016 ($700,000) ($150,000) ($50,000) 2017 ($700,000) ($150,000) ($50,000) 2018 ($750,000) ($150,000) ($50,000) Fiscal Analysis The bill would amend Chapter 151, Tax Code to add certain school art supplies to the definition of school supplies eligible for exemption during a limited period. The bill would amend Section 151.327(a)(2) to add a paintbrush used for artwork, watercolors, and acrylic, tempera, and oil paints to the items eligible for exemption. The bill would take effect immediately if it receives the requisite two-thirds votes in each house, otherwise it would take effect September 1, 2013. Methodology Census Bureau data, school art supply price data, Texas Education Agency data on enrollment in art classes, and Comptroller tax files data was used to develop an estimate of school art supply purchases that would occur within the annual August tax holiday, and the state sales tax rate applied to estimate the revenue impact. Effects on units of local government were estimated proportionally. If the bill were to receive immediate effect, the additional items would be eligible for exemption during the August 2013 tax holiday. This would principally impact fiscal 2014 revenues, but there would be some effect in fiscal 2013 due to estimated prepayments of tax. If the bill were to take effect September 1, 2013 the first affected tax holiday would be that of August 2014.
Fiscal Year Probable Revenue (Loss) fromGeneral Revenue Fund1 Probable Revenue (Loss) fromCities Probable Revenue (Loss) fromTransit Authorities 2014 ($50,000) $0 $0 2015 ($600,000) ($100,000) ($50,000) 2016 ($700,000) ($150,000) ($50,000) 2017 ($700,000) ($150,000) ($50,000) 2018 ($750,000) ($150,000) ($50,000)
2014 ($50,000) $0 $0
2015 ($600,000) ($100,000) ($50,000)
2016 ($700,000) ($150,000) ($50,000)
2017 ($700,000) ($150,000) ($50,000)
2018 ($750,000) ($150,000) ($50,000)
Fiscal Analysis
The bill would amend Chapter 151, Tax Code to add certain school art supplies to the definition of school supplies eligible for exemption during a limited period. The bill would amend Section 151.327(a)(2) to add a paintbrush used for artwork, watercolors, and acrylic, tempera, and oil paints to the items eligible for exemption. The bill would take effect immediately if it receives the requisite two-thirds votes in each house, otherwise it would take effect September 1, 2013.
Methodology
Census Bureau data, school art supply price data, Texas Education Agency data on enrollment in art classes, and Comptroller tax files data was used to develop an estimate of school art supply purchases that would occur within the annual August tax holiday, and the state sales tax rate applied to estimate the revenue impact. Effects on units of local government were estimated proportionally. If the bill were to receive immediate effect, the additional items would be eligible for exemption during the August 2013 tax holiday. This would principally impact fiscal 2014 revenues, but there would be some effect in fiscal 2013 due to estimated prepayments of tax. If the bill were to take effect September 1, 2013 the first affected tax holiday would be that of August 2014.
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