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:HB1841 by Bonnen, Greg (Relating to the applicability of the sales and use tax to certain insurance services.), As Introduced Estimated Two-year Net Impact to General Revenue Related Funds for HB1841, As Introduced: a negative impact of ($2,000,000) 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:HB1841 by Bonnen, Greg (Relating to the applicability of the sales and use tax to certain insurance services.), As Introduced
TO: Honorable Dennis Bonnen, Chair, House Committee on Ways & Means
FROM: Ursula Parks, Director, Legislative Budget Board
IN RE: HB1841 by Bonnen, Greg (Relating to the applicability of the sales and use tax to certain insurance services.), 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
HB1841 by Bonnen, Greg (Relating to the applicability of the sales and use tax to certain insurance services.), As Introduced
HB1841 by Bonnen, Greg (Relating to the applicability of the sales and use tax to certain insurance services.), As Introduced
Estimated Two-year Net Impact to General Revenue Related Funds for HB1841, As Introduced: a negative impact of ($2,000,000) through the biennium ending August 31, 2017.
Estimated Two-year Net Impact to General Revenue Related Funds for HB1841, As Introduced: a negative impact of ($2,000,000) 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 ($1,000,000) 2017 ($1,000,000) 2018 ($1,000,000) 2019 ($1,000,000) 2020 ($1,000,000)
2016 ($1,000,000)
2017 ($1,000,000)
2018 ($1,000,000)
2019 ($1,000,000)
2020 ($1,000,000)
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 ($1,000,000) ($184,000) ($63,000) ($34,000) 2017 ($1,000,000) ($184,000) ($63,000) ($34,000) 2018 ($1,000,000) ($184,000) ($63,000) ($34,000) 2019 ($1,000,000) ($184,000) ($63,000) ($34,000) 2020 ($1,000,000) ($184,000) ($63,000) ($34,000)
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 ($1,000,000) ($184,000) ($63,000) ($34,000) 2017 ($1,000,000) ($184,000) ($63,000) ($34,000) 2018 ($1,000,000) ($184,000) ($63,000) ($34,000) 2019 ($1,000,000) ($184,000) ($63,000) ($34,000) 2020 ($1,000,000) ($184,000) ($63,000) ($34,000)
2016 ($1,000,000) ($184,000) ($63,000) ($34,000)
2017 ($1,000,000) ($184,000) ($63,000) ($34,000)
2018 ($1,000,000) ($184,000) ($63,000) ($34,000)
2019 ($1,000,000) ($184,000) ($63,000) ($34,000)
2020 ($1,000,000) ($184,000) ($63,000) ($34,000)
Fiscal Analysis
The bill would amend Section 151.0039 of the Tax Code, regarding sales and use taxes, to exclude from the definition of "insurance service" a service performed on behalf of an insured by a public insurance adjuster licensed under Chapter 4102, Insurance Code. This bill would take effect October 1, 2015.
Methodology
Comptroller data was collected on taxable sales in the insurance adjusting sector, and sales tax data was adjusted for the market share of public insurance adjusting in Texas. Sales tax loss data was extrapolated through 2020.
Local Government Impact
There would be a proportional loss of sales and use tax revenue from local taxing jurisdictions.
Source Agencies: 304 Comptroller of Public Accounts
304 Comptroller of Public Accounts
LBB Staff: UP, KK
UP, KK