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:HB3719 by King, Tracy O. (Relating to an exemption from the sales tax for certain water-conserving products for a limited period.), As Introduced Estimated Two-year Net Impact to General Revenue Related Funds for HB3719, As Introduced: a negative impact of ($4,300,000) 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:HB3719 by King, Tracy O. (Relating to an exemption from the sales tax for certain water-conserving products for a limited period.), As Introduced
TO: Honorable Dennis Bonnen, Chair, House Committee on Ways & Means
FROM: Ursula Parks, Director, Legislative Budget Board
IN RE: HB3719 by King, Tracy O. (Relating to an exemption from the sales tax for certain water-conserving products for a limited period.), 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
HB3719 by King, Tracy O. (Relating to an exemption from the sales tax for certain water-conserving products for a limited period.), As Introduced
HB3719 by King, Tracy O. (Relating to an exemption from the sales tax for certain water-conserving products for a limited period.), As Introduced
Estimated Two-year Net Impact to General Revenue Related Funds for HB3719, As Introduced: a negative impact of ($4,300,000) through the biennium ending August 31, 2017.
Estimated Two-year Net Impact to General Revenue Related Funds for HB3719, As Introduced: a negative impact of ($4,300,000) 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 ($2,000,000) 2017 ($2,300,000) 2018 ($2,400,000) 2019 ($2,500,000) 2020 ($2,600,000)
2016 ($2,000,000)
2017 ($2,300,000)
2018 ($2,400,000)
2019 ($2,500,000)
2020 ($2,600,000)
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 ($2,000,000) ($400,000) ($100,000) ($100,000) 2017 ($2,300,000) ($400,000) ($100,000) ($100,000) 2018 ($2,400,000) ($400,000) ($200,000) ($100,000) 2019 ($2,500,000) ($500,000) ($200,000) ($100,000) 2020 ($2,600,000) ($500,000) ($200,000) ($100,000)
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 ($2,000,000) ($400,000) ($100,000) ($100,000) 2017 ($2,300,000) ($400,000) ($100,000) ($100,000) 2018 ($2,400,000) ($400,000) ($200,000) ($100,000) 2019 ($2,500,000) ($500,000) ($200,000) ($100,000) 2020 ($2,600,000) ($500,000) ($200,000) ($100,000)
2016 ($2,000,000) ($400,000) ($100,000) ($100,000)
2017 ($2,300,000) ($400,000) ($100,000) ($100,000)
2018 ($2,400,000) ($400,000) ($200,000) ($100,000)
2019 ($2,500,000) ($500,000) ($200,000) ($100,000)
2020 ($2,600,000) ($500,000) ($200,000) ($100,000)
Fiscal Analysis
The bill would amend Chapter 151 of the Tax Code, to provide for an exemption from sales and use tax of certain water-conserving products for a limited period. New Section 151.3336 would exempt a water-conserving product from sales tax if the sale takes place during a period beginning March 1 and ending March 8. "Water-conserving product" would be defined as tangible personal property used outdoors on private residential property and not in a business or trade that may result in water conservation or groundwater retention, water table recharge, or a decrease in evaporation. The term would include drought-tolerant live plants, a soaker or drip irrigation hose, a moisture control for sprinkler or irrigation systems, mulch and soil, a rain barrel or alternative moisture control system, a permeable ground cover surface, seeds coated with a water-saving surfactant, and a water saving surfactant. The Comptroller would be required to include in the exemption study required by Section 403.014, Government Code, an analysis of the effect of the exemption on water conservation efforts. This bill would take effect September 1, 2015
Methodology
National data on annual household expenditures on lawns and gardens from the National Gardening Association were apportioned to the state based on population, reduced to reflect expenditures on water-conserving items and for sales that would occur during the tax exempt period. The result was multiplied by the sales tax rate to yield the applicable sales tax. Fiscal implications for units of local government were estimated proportionally.
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