LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 84TH LEGISLATIVE REGULAR SESSION March 29, 2015 TO: Honorable Dennis Bonnen, Chair, House Committee on Ways & Means FROM: Ursula Parks, Director, Legislative Budget Board IN RE:HB2114 by Murphy (Relating to the repeal of the inheritance tax and the tax on combative sports events.), As Introduced Estimated Two-year Net Impact to General Revenue Related Funds for HB2114, As Introduced: a negative impact of ($1,202,000) through the biennium ending August 31, 2017.
LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 84TH LEGISLATIVE REGULAR SESSION
March 29, 2015
TO: Honorable Dennis Bonnen, Chair, House Committee on Ways & Means FROM: Ursula Parks, Director, Legislative Budget Board IN RE:HB2114 by Murphy (Relating to the repeal of the inheritance tax and the tax on combative sports events.), As Introduced
TO: Honorable Dennis Bonnen, Chair, House Committee on Ways & Means
FROM: Ursula Parks, Director, Legislative Budget Board
IN RE: HB2114 by Murphy (Relating to the repeal of the inheritance tax and the tax on combative sports events.), 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
HB2114 by Murphy (Relating to the repeal of the inheritance tax and the tax on combative sports events.), As Introduced
HB2114 by Murphy (Relating to the repeal of the inheritance tax and the tax on combative sports events.), As Introduced
Estimated Two-year Net Impact to General Revenue Related Funds for HB2114, As Introduced: a negative impact of ($1,202,000) through the biennium ending August 31, 2017.
Estimated Two-year Net Impact to General Revenue Related Funds for HB2114, As Introduced: a negative impact of ($1,202,000) 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 ($601,000) 2017 ($601,000) 2018 ($601,000) 2019 ($601,000) 2020 ($601,000)
2016 ($601,000)
2017 ($601,000)
2018 ($601,000)
2019 ($601,000)
2020 ($601,000)
All Funds, Five-Year Impact: Fiscal Year Probable Revenue (Loss) fromGeneral Revenue Fund1 2016 ($601,000) 2017 ($601,000) 2018 ($601,000) 2019 ($601,000) 2020 ($601,000)
Fiscal Year Probable Revenue (Loss) fromGeneral Revenue Fund1 2016 ($601,000) 2017 ($601,000) 2018 ($601,000) 2019 ($601,000) 2020 ($601,000)
2016 ($601,000)
2017 ($601,000)
2018 ($601,000)
2019 ($601,000)
2020 ($601,000)
Fiscal Analysis
The bill would amend Chapter 2052 of the Occupations Code to repeal the combative sports admissions tax, and would repeal Chapter 211 of the Tax Code to eliminate inheritance taxes. The bill would take effect September 1, 2015.
The bill would amend Chapter 2052 of the Occupations Code to repeal the combative sports admissions tax, and would repeal Chapter 211 of the Tax Code to eliminate inheritance taxes.
The bill would take effect September 1, 2015.
Methodology
The combative sports admissions tax is a 3 percent levy on the ticket sales for an event, plus 3 percent of gross receipts from sales of broadcast rights or $30,000 whichever is greater. The annual losses were estimated based on the 2016-17 Biennial Revenue Estimate. The state's inheritance tax has collected no significant revenue since fiscal 2005, and it is expected its repeal would have no fiscal impact. The Comptroller's office has indicated that repealing the inheritance tax, when combined with the repeal of taxes on liquefied gas, controlled substances, oil regulation, sulphur, and fireworks, will allow the Comptroller to redeploy resources to audit and enforcement activities for other sources of revenue. It is expected that redeploying these resources will generate revenue sufficient to offset revenue lost from repealing inheritance and combative sports admissions taxes.
The combative sports admissions tax is a 3 percent levy on the ticket sales for an event, plus 3 percent of gross receipts from sales of broadcast rights or $30,000 whichever is greater. The annual losses were estimated based on the 2016-17 Biennial Revenue Estimate. The state's inheritance tax has collected no significant revenue since fiscal 2005, and it is expected its repeal would have no fiscal impact.
The Comptroller's office has indicated that repealing the inheritance tax, when combined with the repeal of taxes on liquefied gas, controlled substances, oil regulation, sulphur, and fireworks, will allow the Comptroller to redeploy resources to audit and enforcement activities for other sources of revenue. It is expected that redeploying these resources will generate revenue sufficient to offset revenue lost from repealing inheritance and combative sports admissions taxes.
Local Government Impact
No 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