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:HB2199 by Parker (Relating to the amount of a sales and use tax refund for tangible personal property used to provide cable television service, Internet access service, or telecommunications services.), As Introduced Estimated Two-year Net Impact to General Revenue Related Funds for HB2199, As Introduced: a negative impact of ($200,000,000) 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:HB2199 by Parker (Relating to the amount of a sales and use tax refund for tangible personal property used to provide cable television service, Internet access service, or telecommunications services.), As Introduced
TO: Honorable Dennis Bonnen, Chair, House Committee on Ways & Means
FROM: Ursula Parks, Director, Legislative Budget Board
IN RE: HB2199 by Parker (Relating to the amount of a sales and use tax refund for tangible personal property used to provide cable television service, Internet access service, or telecommunications 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
HB2199 by Parker (Relating to the amount of a sales and use tax refund for tangible personal property used to provide cable television service, Internet access service, or telecommunications services.), As Introduced
HB2199 by Parker (Relating to the amount of a sales and use tax refund for tangible personal property used to provide cable television service, Internet access service, or telecommunications services.), As Introduced
Estimated Two-year Net Impact to General Revenue Related Funds for HB2199, As Introduced: a negative impact of ($200,000,000) through the biennium ending August 31, 2017.
Estimated Two-year Net Impact to General Revenue Related Funds for HB2199, As Introduced: a negative impact of ($200,000,000) 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 ($100,000,000) 2017 ($100,000,000) 2018 ($100,000,000) 2019 ($100,000,000) 2020 ($100,000,000)
2016 ($100,000,000)
2017 ($100,000,000)
2018 ($100,000,000)
2019 ($100,000,000)
2020 ($100,000,000)
All Funds, Five-Year Impact: Fiscal Year Probable Revenue (Loss) fromGeneral Revenue Fund1 2016 ($100,000,000) 2017 ($100,000,000) 2018 ($100,000,000) 2019 ($100,000,000) 2020 ($100,000,000)
Fiscal Year Probable Revenue (Loss) fromGeneral Revenue Fund1 2016 ($100,000,000) 2017 ($100,000,000) 2018 ($100,000,000) 2019 ($100,000,000) 2020 ($100,000,000)
2016 ($100,000,000)
2017 ($100,000,000)
2018 ($100,000,000)
2019 ($100,000,000)
2020 ($100,000,000)
Fiscal Analysis
The bill would amend Section 151.3186 of the Tax Code, to provide that the annual limit on refunds of state sales and use tax to providers of cable television service, Internet access service, or telecommunications under that section is $150 million. The limit in current law is $50 million. The bill would take effect September 1, 2015.
Methodology
Requests for refunds based on four months of activity in calendar year 2013 were in excess of the current $50 million annual limit. Consequently, it is expected that requests for refunds based on full years of activity will exceed the proposed $150 million limit, and the amount of refunds paid each year under the section will be $150 million.
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