LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 84TH LEGISLATIVE REGULAR SESSION May 14, 2015 TO: Honorable Jane Nelson, Chair, Senate Committee on Finance 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 Engrossed Estimated Two-year Net Impact to General Revenue Related Funds for HB1841, As Engrossed: a negative impact of ($13,880,000) through the biennium ending August 31, 2017.
LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 84TH LEGISLATIVE REGULAR SESSION
May 14, 2015
TO: Honorable Jane Nelson, Chair, Senate Committee on Finance 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 Engrossed
TO: Honorable Jane Nelson, Chair, Senate Committee on Finance
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 Engrossed
Honorable Jane Nelson, Chair, Senate Committee on Finance
Honorable Jane Nelson, Chair, Senate Committee on Finance
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 Engrossed
HB1841 by Bonnen, Greg (Relating to the applicability of the sales and use tax to certain insurance services.), As Engrossed
Estimated Two-year Net Impact to General Revenue Related Funds for HB1841, As Engrossed: a negative impact of ($13,880,000) through the biennium ending August 31, 2017.
Estimated Two-year Net Impact to General Revenue Related Funds for HB1841, As Engrossed: a negative impact of ($13,880,000) 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 ($6,800,000) 2017 ($7,080,000) 2018 ($7,370,000) 2019 ($7,690,000) 2020 ($8,030,000)
2016 ($6,800,000)
2017 ($7,080,000)
2018 ($7,370,000)
2019 ($7,690,000)
2020 ($8,030,000)
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 ($6,800,000) ($1,250,000) ($430,000) ($230,000) 2017 ($7,080,000) ($1,310,000) ($450,000) ($240,000) 2018 ($7,370,000) ($1,360,000) ($470,000) ($250,000) 2019 ($7,690,000) ($1,420,000) ($490,000) ($260,000) 2020 ($8,030,000) ($1,480,000) ($510,000) ($270,000)
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 ($6,800,000) ($1,250,000) ($430,000) ($230,000) 2017 ($7,080,000) ($1,310,000) ($450,000) ($240,000) 2018 ($7,370,000) ($1,360,000) ($470,000) ($250,000) 2019 ($7,690,000) ($1,420,000) ($490,000) ($260,000) 2020 ($8,030,000) ($1,480,000) ($510,000) ($270,000)
2016 ($6,800,000) ($1,250,000) ($430,000) ($230,000)
2017 ($7,080,000) ($1,310,000) ($450,000) ($240,000)
2018 ($7,370,000) ($1,360,000) ($470,000) ($250,000)
2019 ($7,690,000) ($1,420,000) ($490,000) ($260,000)
2020 ($8,030,000) ($1,480,000) ($510,000) ($270,000)
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: 1) performed on behalf of an insured by a public insurance adjuster licensed under Chapter 4102, Insurance Code, or 2) provided by a person certified as a public accountant under Chapter 901, Occupations Code. The bill would take effect October 1, 2015.
Methodology
Comptroller data on taxable sales in the insurance services and accounting sectors were adjusted to shares expected to be exempted by the bill, multiplied by the state sales tax rate, and 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, SD
UP, KK, SD