LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 84TH LEGISLATIVE REGULAR SESSION April 20, 2015 TO: Honorable Dennis Bonnen, Chair, House Committee on Ways & Means FROM: Ursula Parks, Director, Legislative Budget Board IN RE:HB103 by Guillen (Relating to the authority of certain volunteer firefighter and emergency services organizations to hold tax-free sales or auctions.), As Introduced No significant fiscal implication to the State is anticipated. The bill would amend Chapter 151 of the Tax Code, relating to the sales and use tax and the authority of certain volunteer firefighter and emergency services organizations to hold tax-free sales or auctions. The bill would restore and amend expired Subsection (c-1) of Section 151.310 to allow organizations exempt under Section 151.310(a)(4) to hold 10 tax-free sales or auctions during a calendar year, each not to continue for more than 72 hours. Items purchased tax-free under this subsection would not be subject to use tax under Subchapter D of this chapter until the item is resold or transferred. If a volunteer firefighter or emergency services organization jointly holds a tax-free sale or auction with one or more other exempt organizations, the sale or auction would count towards the 10 tax-free sales or auctions authorized. Authority for the same number of tax-free sales by these volunteer firefighter and emergency services organizations was previously provided by a Subsection (c-1) of Section 151.310, which expired September 1, 2014. This bill would provide permanent authority for these tax-free sales, and add the stipulation that jointly held sales count toward an organization's annual limit under this Subsection.Comptroller tax files indicate only negligible taxable sales by volunteer fire and volunteer fire/EMS organizations. Exemption of a fraction of such sales would have no significant revenue implications for the state. The bill would take effect immediately upon enactment, assuming it receives the requisite two-thirds majority votes in both houses of the Legislature. Otherwise, it would take effect September 1, 2015. Local Government Impact No significant fiscal implication to units of local government is anticipated. Source Agencies:304 Comptroller of Public Accounts LBB Staff: UP, KK, SD
LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 84TH LEGISLATIVE REGULAR SESSION
April 20, 2015
TO: Honorable Dennis Bonnen, Chair, House Committee on Ways & Means FROM: Ursula Parks, Director, Legislative Budget Board IN RE:HB103 by Guillen (Relating to the authority of certain volunteer firefighter and emergency services organizations to hold tax-free sales or auctions.), As Introduced
TO: Honorable Dennis Bonnen, Chair, House Committee on Ways & Means
FROM: Ursula Parks, Director, Legislative Budget Board
IN RE: HB103 by Guillen (Relating to the authority of certain volunteer firefighter and emergency services organizations to hold tax-free sales or auctions.), As Introduced
Honorable Dennis Bonnen, Chair, House Committee on Ways & Means
Honorable Dennis Bonnen, Chair, House Committee on Ways & Means
Ursula Parks, Director, Legislative Budget Board
Ursula Parks, Director, Legislative Budget Board
HB103 by Guillen (Relating to the authority of certain volunteer firefighter and emergency services organizations to hold tax-free sales or auctions.), As Introduced
HB103 by Guillen (Relating to the authority of certain volunteer firefighter and emergency services organizations to hold tax-free sales or auctions.), As Introduced
No significant fiscal implication to the State is anticipated.
No significant fiscal implication to the State is anticipated.
The bill would amend Chapter 151 of the Tax Code, relating to the sales and use tax and the authority of certain volunteer firefighter and emergency services organizations to hold tax-free sales or auctions. The bill would restore and amend expired Subsection (c-1) of Section 151.310 to allow organizations exempt under Section 151.310(a)(4) to hold 10 tax-free sales or auctions during a calendar year, each not to continue for more than 72 hours. Items purchased tax-free under this subsection would not be subject to use tax under Subchapter D of this chapter until the item is resold or transferred. If a volunteer firefighter or emergency services organization jointly holds a tax-free sale or auction with one or more other exempt organizations, the sale or auction would count towards the 10 tax-free sales or auctions authorized. Authority for the same number of tax-free sales by these volunteer firefighter and emergency services organizations was previously provided by a Subsection (c-1) of Section 151.310, which expired September 1, 2014. This bill would provide permanent authority for these tax-free sales, and add the stipulation that jointly held sales count toward an organization's annual limit under this Subsection.Comptroller tax files indicate only negligible taxable sales by volunteer fire and volunteer fire/EMS organizations. Exemption of a fraction of such sales would have no significant revenue implications for the state. The bill would take effect immediately upon enactment, assuming it receives the requisite two-thirds majority votes in both houses of the Legislature. Otherwise, it would take effect September 1, 2015.
Local Government Impact
No significant 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