LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 84TH LEGISLATIVE REGULAR SESSION March 23, 2015 TO: Honorable Dennis Bonnen, Chair, House Committee on Ways & Means FROM: Ursula Parks, Director, Legislative Budget Board IN RE:HB1625 by Faircloth (Relating to an exemption from the sales and use tax for certain lightbulbs for a limited period.), As Introduced Estimated Two-year Net Impact to General Revenue Related Funds for HB1625, As Introduced: a negative impact of ($1,380,000) through the biennium ending August 31, 2017.
LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 84TH LEGISLATIVE REGULAR SESSION
March 23, 2015
TO: Honorable Dennis Bonnen, Chair, House Committee on Ways & Means FROM: Ursula Parks, Director, Legislative Budget Board IN RE:HB1625 by Faircloth (Relating to an exemption from the sales and use tax for certain lightbulbs for a limited period.), As Introduced
TO: Honorable Dennis Bonnen, Chair, House Committee on Ways & Means
FROM: Ursula Parks, Director, Legislative Budget Board
IN RE: HB1625 by Faircloth (Relating to an exemption from the sales and use tax for certain lightbulbs for a limited period.), 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
HB1625 by Faircloth (Relating to an exemption from the sales and use tax for certain lightbulbs for a limited period.), As Introduced
HB1625 by Faircloth (Relating to an exemption from the sales and use tax for certain lightbulbs for a limited period.), As Introduced
Estimated Two-year Net Impact to General Revenue Related Funds for HB1625, As Introduced: a negative impact of ($1,380,000) through the biennium ending August 31, 2017.
Estimated Two-year Net Impact to General Revenue Related Funds for HB1625, As Introduced: a negative impact of ($1,380,000) 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 ($600,000) 2017 ($780,000) 2018 ($1,010,000) 2019 ($1,310,000) 2020 ($1,700,000)
2016 ($600,000)
2017 ($780,000)
2018 ($1,010,000)
2019 ($1,310,000)
2020 ($1,700,000)
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 ($600,000) ($110,000) ($40,000) ($20,000) 2017 ($780,000) ($140,000) ($50,000) ($30,000) 2018 ($1,010,000) ($190,000) ($60,000) ($30,000) 2019 ($1,310,000) ($240,000) ($80,000) ($40,000) 2020 ($1,700,000) ($310,000) ($110,000) ($60,000)
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 ($600,000) ($110,000) ($40,000) ($20,000) 2017 ($780,000) ($140,000) ($50,000) ($30,000) 2018 ($1,010,000) ($190,000) ($60,000) ($30,000) 2019 ($1,310,000) ($240,000) ($80,000) ($40,000) 2020 ($1,700,000) ($310,000) ($110,000) ($60,000)
2016 ($600,000) ($110,000) ($40,000) ($20,000)
2017 ($780,000) ($140,000) ($50,000) ($30,000)
2018 ($1,010,000) ($190,000) ($60,000) ($30,000)
2019 ($1,310,000) ($240,000) ($80,000) ($40,000)
2020 ($1,700,000) ($310,000) ($110,000) ($60,000)
Fiscal Analysis
The bill would amend Section 151.333(b) of the Tax code to add light-emitting diode (LED) light bulbs to the list of eligible items exempt from the sales and use tax for a limited period. The bill would take effect September 1, 2015.
Methodology
National data on annual shipments of units of LED light bulbs from the U.S. Department of Energy was apportioned to the state based on population, priced based on data from IHS Global, reduced to a portion expected to be sold within the exemption period, multiplied by the state sales tax rate, then extrapolated through 2020. Fiscal implications for units of local government were estimated proportionally.
Local Government Impact
There would be a corresponding loss of sales and use tax revenue from local taxing jurisdictions. The revenue loss is shown in the above tables.
Source Agencies: 304 Comptroller of Public Accounts
304 Comptroller of Public Accounts
LBB Staff: UP, KK, SD
UP, KK, SD