LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 83RD LEGISLATIVE REGULAR SESSION April 17, 2013 TO: Honorable Harvey Hilderbran, Chair, House Committee on Ways & Means FROM: Ursula Parks, Director, Legislative Budget Board IN RE:HB40 by Menéndez (Relating to the sales tax exemption period for clothing, footwear, and certain other items.), As Introduced Estimated Two-year Net Impact to General Revenue Related Funds for HB40, As Introduced: a negative impact of ($38,167,000) through the biennium ending August 31, 2015, if the bill takes immediate effect; or a negative impact of ($22,317,000) 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 17, 2013
TO: Honorable Harvey Hilderbran, Chair, House Committee on Ways & Means FROM: Ursula Parks, Director, Legislative Budget Board IN RE:HB40 by Menéndez (Relating to the sales tax exemption period for clothing, footwear, and certain other items.), As Introduced
TO: Honorable Harvey Hilderbran, Chair, House Committee on Ways & Means
FROM: Ursula Parks, Director, Legislative Budget Board
IN RE: HB40 by Menéndez (Relating to the sales tax exemption period for clothing, footwear, and certain other items.), 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
HB40 by Menéndez (Relating to the sales tax exemption period for clothing, footwear, and certain other items.), As Introduced
HB40 by Menéndez (Relating to the sales tax exemption period for clothing, footwear, and certain other items.), As Introduced
Estimated Two-year Net Impact to General Revenue Related Funds for HB40, As Introduced: a negative impact of ($38,167,000) through the biennium ending August 31, 2015, if the bill takes immediate effect; or a negative impact of ($22,317,000) 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 HB40, As Introduced: a negative impact of ($38,167,000) through the biennium ending August 31, 2015, if the bill takes immediate effect; or a negative impact of ($22,317,000) 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 ($5,117,000) 2014 ($16,100,000) 2015 ($16,950,000) 2016 ($17,800,000) 2017 ($18,625,000) 2018 ($19,550,000)
2013 ($5,117,000)
2014 ($16,100,000)
2015 ($16,950,000)
2016 ($17,800,000)
2017 ($18,625,000)
2018 ($19,550,000)
General Revenue-Related Funds, Five-Year Impact: Fiscal Year Probable Net Positive/(Negative) Impact to General Revenue Related Funds 2014 ($5,367,000) 2015 ($16,950,000) 2016 ($17,800,000) 2017 ($18,625,000) 2018 ($19,550,000)
2014 ($5,367,000)
2015 ($16,950,000)
2016 ($17,800,000)
2017 ($18,625,000)
2018 ($19,550,000)
All Funds, Six-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 2013 ($5,117,000) ($947,000) ($327,000) ($164,000) 2014 ($16,100,000) ($2,979,000) ($1,030,000) ($515,000) 2015 ($16,950,000) ($3,136,000) ($1,085,000) ($542,000) 2016 ($17,800,000) ($3,293,000) ($1,139,000) ($570,000) 2017 ($18,625,000) ($3,446,000) ($1,192,000) ($596,000) 2018 ($19,550,000) ($3,617,000) ($1,251,000) ($626,000) The above table assumes the bill takes immediate effect. 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 Probable Revenue (Loss) fromCounties and Special Districts 2014 ($5,367,000) ($993,000) ($343,000) ($172,000) 2015 ($16,950,000) ($3,136,000) ($1,085,000) ($542,000) 2016 ($17,800,000) ($3,293,000) ($1,139,000) ($570,000) 2017 ($18,625,000) ($3,446,000) ($1,192,000) ($596,000) 2018 ($19,550,000) ($3,617,000) ($1,251,000) ($626,000) Fiscal Analysis The bill would amend Chapter 151 of the Tax Code, regarding the sales and use tax, to provide for a second three-day period during which certain items of clothing, footwear, backpacks and school supplies are exempt from sales tax. Under current law, the back-to-school sales tax holiday begins on the eighth day preceding the earliest date on which any school district, other than a district operating on a year-round system, may begin instruction for the school year. The bill would provide for a second sales tax holiday beginning on the fifteenth day preceding the earliest date on which any school district, other than a district operating on a year-round system, may begin instruction for the school year. 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. Methodology The revenue implications from an additional three-day period of exempt sales were estimated proportionally to the revenue collection impacts from the existing sales tax holiday implications in the 2014-15 Biennial Revenue Estimateand as published in the Tax Exemptions & Tax Incidence report. The result was then adjusted for implementation dates. The fiscal impacts on 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 LBB Staff: UP, KK, SD
Fiscal Year Probable Revenue (Loss) fromGeneral Revenue Fund1 Probable Revenue (Loss) fromCities Probable Revenue (Loss) fromTransit Authorities Probable Revenue (Loss) fromCounties and Special Districts 2013 ($5,117,000) ($947,000) ($327,000) ($164,000) 2014 ($16,100,000) ($2,979,000) ($1,030,000) ($515,000) 2015 ($16,950,000) ($3,136,000) ($1,085,000) ($542,000) 2016 ($17,800,000) ($3,293,000) ($1,139,000) ($570,000) 2017 ($18,625,000) ($3,446,000) ($1,192,000) ($596,000) 2018 ($19,550,000) ($3,617,000) ($1,251,000) ($626,000)
2013 ($5,117,000) ($947,000) ($327,000) ($164,000)
2014 ($16,100,000) ($2,979,000) ($1,030,000) ($515,000)
2015 ($16,950,000) ($3,136,000) ($1,085,000) ($542,000)
2016 ($17,800,000) ($3,293,000) ($1,139,000) ($570,000)
2017 ($18,625,000) ($3,446,000) ($1,192,000) ($596,000)
2018 ($19,550,000) ($3,617,000) ($1,251,000) ($626,000)
The above table assumes the bill takes immediate effect. 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 Probable Revenue (Loss) fromCounties and Special Districts 2014 ($5,367,000) ($993,000) ($343,000) ($172,000) 2015 ($16,950,000) ($3,136,000) ($1,085,000) ($542,000) 2016 ($17,800,000) ($3,293,000) ($1,139,000) ($570,000) 2017 ($18,625,000) ($3,446,000) ($1,192,000) ($596,000) 2018 ($19,550,000) ($3,617,000) ($1,251,000) ($626,000) Fiscal Analysis The bill would amend Chapter 151 of the Tax Code, regarding the sales and use tax, to provide for a second three-day period during which certain items of clothing, footwear, backpacks and school supplies are exempt from sales tax. Under current law, the back-to-school sales tax holiday begins on the eighth day preceding the earliest date on which any school district, other than a district operating on a year-round system, may begin instruction for the school year. The bill would provide for a second sales tax holiday beginning on the fifteenth day preceding the earliest date on which any school district, other than a district operating on a year-round system, may begin instruction for the school year. 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. Methodology The revenue implications from an additional three-day period of exempt sales were estimated proportionally to the revenue collection impacts from the existing sales tax holiday implications in the 2014-15 Biennial Revenue Estimateand as published in the Tax Exemptions & Tax Incidence report. The result was then adjusted for implementation dates. The fiscal impacts on units of local government were estimated proportionally.
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 ($5,367,000) ($993,000) ($343,000) ($172,000) 2015 ($16,950,000) ($3,136,000) ($1,085,000) ($542,000) 2016 ($17,800,000) ($3,293,000) ($1,139,000) ($570,000) 2017 ($18,625,000) ($3,446,000) ($1,192,000) ($596,000) 2018 ($19,550,000) ($3,617,000) ($1,251,000) ($626,000)
2014 ($5,367,000) ($993,000) ($343,000) ($172,000)
2015 ($16,950,000) ($3,136,000) ($1,085,000) ($542,000)
2016 ($17,800,000) ($3,293,000) ($1,139,000) ($570,000)
2017 ($18,625,000) ($3,446,000) ($1,192,000) ($596,000)
2018 ($19,550,000) ($3,617,000) ($1,251,000) ($626,000)
Fiscal Analysis
The bill would amend Chapter 151 of the Tax Code, regarding the sales and use tax, to provide for a second three-day period during which certain items of clothing, footwear, backpacks and school supplies are exempt from sales tax. Under current law, the back-to-school sales tax holiday begins on the eighth day preceding the earliest date on which any school district, other than a district operating on a year-round system, may begin instruction for the school year. The bill would provide for a second sales tax holiday beginning on the fifteenth day preceding the earliest date on which any school district, other than a district operating on a year-round system, may begin instruction for the school year. 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 would amend Chapter 151 of the Tax Code, regarding the sales and use tax, to provide for a second three-day period during which certain items of clothing, footwear, backpacks and school supplies are exempt from sales tax. Under current law, the back-to-school sales tax holiday begins on the eighth day preceding the earliest date on which any school district, other than a district operating on a year-round system, may begin instruction for the school year. The bill would provide for a second sales tax holiday beginning on the fifteenth day preceding the earliest date on which any school district, other than a district operating on a year-round system, may begin instruction for the school year.
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.
Methodology
The revenue implications from an additional three-day period of exempt sales were estimated proportionally to the revenue collection impacts from the existing sales tax holiday implications in the 2014-15 Biennial Revenue Estimateand as published in the Tax Exemptions & Tax Incidence report. The result was then adjusted for implementation dates. The fiscal impacts on 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