LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 84TH LEGISLATIVE REGULAR SESSION April 6, 2015 TO: Honorable Dennis Bonnen, Chair, House Committee on Ways & Means FROM: Ursula Parks, Director, Legislative Budget Board IN RE:HB1458 by Bohac (Relating to the sales and use tax exemption for the repair, remodeling, or maintenance of aircraft.), As Introduced Estimated Two-year Net Impact to General Revenue Related Funds for HB1458, As Introduced: a negative impact of ($10,300,000) through the biennium ending August 31, 2017.
LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 84TH LEGISLATIVE REGULAR SESSION
April 6, 2015
TO: Honorable Dennis Bonnen, Chair, House Committee on Ways & Means FROM: Ursula Parks, Director, Legislative Budget Board IN RE:HB1458 by Bohac (Relating to the sales and use tax exemption for the repair, remodeling, or maintenance of aircraft.), As Introduced
TO: Honorable Dennis Bonnen, Chair, House Committee on Ways & Means
FROM: Ursula Parks, Director, Legislative Budget Board
IN RE: HB1458 by Bohac (Relating to the sales and use tax exemption for the repair, remodeling, or maintenance of aircraft.), 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
HB1458 by Bohac (Relating to the sales and use tax exemption for the repair, remodeling, or maintenance of aircraft.), As Introduced
HB1458 by Bohac (Relating to the sales and use tax exemption for the repair, remodeling, or maintenance of aircraft.), As Introduced
Estimated Two-year Net Impact to General Revenue Related Funds for HB1458, As Introduced: a negative impact of ($10,300,000) through the biennium ending August 31, 2017.
Estimated Two-year Net Impact to General Revenue Related Funds for HB1458, As Introduced: a negative impact of ($10,300,000) through the biennium ending August 31, 2017.
General Revenue-Related Funds, Five-Year Impact: Fiscal Year Probable Net Positive/(Negative) Impact to General Revenue Related Funds 2016 ($4,800,000) 2017 ($5,500,000) 2018 ($5,700,000) 2019 ($5,900,000) 2020 ($6,100,000)
2016 ($4,800,000)
2017 ($5,500,000)
2018 ($5,700,000)
2019 ($5,900,000)
2020 ($6,100,000)
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 2016 ($4,800,000) ($900,000) ($300,000) ($100,000) 2017 ($5,500,000) ($1,000,000) ($300,000) ($100,000) 2018 ($5,700,000) ($1,100,000) ($400,000) ($100,000) 2019 ($5,900,000) ($1,100,000) ($400,000) ($100,000) 2020 ($6,100,000) ($1,100,000) ($400,000) ($100,000)
Fiscal Year Probable Revenue (Loss) fromGeneral Revenue Fund1 Probable Revenue (Loss) fromCities Probable Revenue (Loss) fromTransit Authorities Probable Revenue (Loss) fromCounties and Special Districts 2016 ($4,800,000) ($900,000) ($300,000) ($100,000) 2017 ($5,500,000) ($1,000,000) ($300,000) ($100,000) 2018 ($5,700,000) ($1,100,000) ($400,000) ($100,000) 2019 ($5,900,000) ($1,100,000) ($400,000) ($100,000) 2020 ($6,100,000) ($1,100,000) ($400,000) ($100,000)
2016 ($4,800,000) ($900,000) ($300,000) ($100,000)
2017 ($5,500,000) ($1,000,000) ($300,000) ($100,000)
2018 ($5,700,000) ($1,100,000) ($400,000) ($100,000)
2019 ($5,900,000) ($1,100,000) ($400,000) ($100,000)
2020 ($6,100,000) ($1,100,000) ($400,000) ($100,000)
Fiscal Analysis
The bill would amend Section 151.328 of the Tax Code relating to sales and use taxation of aircraft. The bill would amend Subsection (b) to provide that repair, remodeling, and maintenance services to all aircraft are exempt. Current law limits this exemption to services performed with respect to aircraft used as certificated or licensed carriers of persons or property, used for flight instruction, or used for certain agricultural purposes. The bill would amend Subsections (d) and (e) to provide that machinery, tools, supplies, and equipment used exclusively in the repair, remodeling, or maintenance of all aircraft is exempt, as well as tangible personal property affixed, attached, or placed in all aircraft. Current law limits these exemptions to aircraft used as certificated or licensed carriers of persons or property or used for flight instruction. The bill would take effect September 1, 2015.
Methodology
The fiscal implications were estimated based on data from Comptroller tax files and industry sources on amounts subject to Texas sales and use tax of businesses performing aircraft repair and maintenance.
Local Government Impact
There would be a proportional loss of sales and use tax revenue from local taxing jurisdictions as shown in the above table.
Source Agencies: 304 Comptroller of Public Accounts
304 Comptroller of Public Accounts
LBB Staff: UP, KK, SD
UP, KK, SD