LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 84TH LEGISLATIVE REGULAR SESSION April 21, 2015 TO: Honorable Dennis Bonnen, Chair, House Committee on Ways & Means FROM: Ursula Parks, Director, Legislative Budget Board IN RE:HB31 by Bonnen, Dennis (relating to decreasing the state sales and use tax rate.), Committee Report 1st House, Substituted Estimated Two-year Net Impact to General Revenue Related Funds for HB31, Committee Report 1st House, Substituted: a negative impact of ($2,660,000,000) through the biennium ending August 31, 2017.
LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 84TH LEGISLATIVE REGULAR SESSION
April 21, 2015
TO: Honorable Dennis Bonnen, Chair, House Committee on Ways & Means FROM: Ursula Parks, Director, Legislative Budget Board IN RE:HB31 by Bonnen, Dennis (relating to decreasing the state sales and use tax rate.), Committee Report 1st House, Substituted
TO: Honorable Dennis Bonnen, Chair, House Committee on Ways & Means
FROM: Ursula Parks, Director, Legislative Budget Board
IN RE: HB31 by Bonnen, Dennis (relating to decreasing the state sales and use tax rate.), Committee Report 1st House, Substituted
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
HB31 by Bonnen, Dennis (relating to decreasing the state sales and use tax rate.), Committee Report 1st House, Substituted
HB31 by Bonnen, Dennis (relating to decreasing the state sales and use tax rate.), Committee Report 1st House, Substituted
Estimated Two-year Net Impact to General Revenue Related Funds for HB31, Committee Report 1st House, Substituted: a negative impact of ($2,660,000,000) through the biennium ending August 31, 2017.
Estimated Two-year Net Impact to General Revenue Related Funds for HB31, Committee Report 1st House, Substituted: a negative impact of ($2,660,000,000) 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 ($1,190,000,000) 2017 ($1,470,000,000) 2018 ($1,550,000,000) 2019 ($1,650,000,000) 2020 ($1,760,000,000)
2016 ($1,190,000,000)
2017 ($1,470,000,000)
2018 ($1,550,000,000)
2019 ($1,650,000,000)
2020 ($1,760,000,000)
All Funds, Five-Year Impact: Fiscal Year Probable Revenue (Loss) fromGeneral Revenue Fund1 Probable Revenue (Loss) fromState Highway Fund6 Probable Revenue Gain fromCities Probable Revenue Gain fromTransit Authorities 2016 ($1,190,000,000) ($1,800,000) $9,200,000 $3,100,000 2017 ($1,470,000,000) ($2,200,000) $9,800,000 $3,300,000 2018 ($1,550,000,000) ($2,200,000) $10,400,000 $3,600,000 2019 ($1,650,000,000) ($2,200,000) $11,100,000 $3,800,000 2020 ($1,760,000,000) ($2,200,000) $11,800,000 $4,000,000 Fiscal Year Probable Revenue Gain fromCounties and Special Districts 2016 $1,700,000 2017 $1,800,000 2018 $1,900,000 2019 $2,000,000 2020 $2,200,000
Fiscal Year Probable Revenue (Loss) fromGeneral Revenue Fund1 Probable Revenue (Loss) fromState Highway Fund6 Probable Revenue Gain fromCities Probable Revenue Gain fromTransit Authorities 2016 ($1,190,000,000) ($1,800,000) $9,200,000 $3,100,000 2017 ($1,470,000,000) ($2,200,000) $9,800,000 $3,300,000 2018 ($1,550,000,000) ($2,200,000) $10,400,000 $3,600,000 2019 ($1,650,000,000) ($2,200,000) $11,100,000 $3,800,000 2020 ($1,760,000,000) ($2,200,000) $11,800,000 $4,000,000
2016 ($1,190,000,000) ($1,800,000) $9,200,000 $3,100,000
2017 ($1,470,000,000) ($2,200,000) $9,800,000 $3,300,000
2018 ($1,550,000,000) ($2,200,000) $10,400,000 $3,600,000
2019 ($1,650,000,000) ($2,200,000) $11,100,000 $3,800,000
2020 ($1,760,000,000) ($2,200,000) $11,800,000 $4,000,000
Fiscal Year Probable Revenue Gain fromCounties and Special Districts 2016 $1,700,000 2017 $1,800,000 2018 $1,900,000 2019 $2,000,000 2020 $2,200,000
2016 $1,700,000
2017 $1,800,000
2018 $1,900,000
2019 $2,000,000
2020 $2,200,000
Fiscal Analysis
The bill would amend Section 151.051 of the Tax Code, to decrease the sales tax rate to 5.95 percent. The current rate is 6.25 percent. The bill would take effect October 1, 2015.
Methodology
The forecasts of revenues for the limited sales and use tax in the 2016-17 Biennial Revenue Estimate were adjusted for the rate change, extrapolated through 2020, and adjusted for the effective date.
Local Government Impact
The decrease in the state tax rate would be expected to result in a marginal increase in expenditures on taxable items and thus marginal increases in local sales and use tax revenues.
Source Agencies: 304 Comptroller of Public Accounts
304 Comptroller of Public Accounts
LBB Staff: UP, KK, SD
UP, KK, SD