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:HB633 by Bonnen, Greg (Relating to a sales and use tax exemption for certain health care supplies.), As Introduced Estimated Two-year Net Impact to General Revenue Related Funds for HB633, As Introduced: a negative impact of ($125,200,000) 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:HB633 by Bonnen, Greg (Relating to a sales and use tax exemption for certain health care supplies.), As Introduced
TO: Honorable Dennis Bonnen, Chair, House Committee on Ways & Means
FROM: Ursula Parks, Director, Legislative Budget Board
IN RE: HB633 by Bonnen, Greg (Relating to a sales and use tax exemption for certain health care supplies.), 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
HB633 by Bonnen, Greg (Relating to a sales and use tax exemption for certain health care supplies.), As Introduced
HB633 by Bonnen, Greg (Relating to a sales and use tax exemption for certain health care supplies.), As Introduced
Estimated Two-year Net Impact to General Revenue Related Funds for HB633, As Introduced: a negative impact of ($125,200,000) through the biennium ending August 31, 2017.
Estimated Two-year Net Impact to General Revenue Related Funds for HB633, As Introduced: a negative impact of ($125,200,000) 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 ($61,400,000) 2017 ($63,800,000) 2018 ($66,300,000) 2019 ($69,000,000) 2020 ($71,700,000)
2016 ($61,400,000)
2017 ($63,800,000)
2018 ($66,300,000)
2019 ($69,000,000)
2020 ($71,700,000)
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 ($61,400,000) ($11,300,000) ($3,900,000) ($2,100,000) 2017 ($63,800,000) ($11,800,000) ($4,000,000) ($2,200,000) 2018 ($66,300,000) ($12,200,000) ($4,200,000) ($2,300,000) 2019 ($69,000,000) ($12,700,000) ($4,400,000) ($2,300,000) 2020 ($71,700,000) ($13,200,000) ($4,500,000) ($2,400,000)
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 ($61,400,000) ($11,300,000) ($3,900,000) ($2,100,000) 2017 ($63,800,000) ($11,800,000) ($4,000,000) ($2,200,000) 2018 ($66,300,000) ($12,200,000) ($4,200,000) ($2,300,000) 2019 ($69,000,000) ($12,700,000) ($4,400,000) ($2,300,000) 2020 ($71,700,000) ($13,200,000) ($4,500,000) ($2,400,000)
2016 ($61,400,000) ($11,300,000) ($3,900,000) ($2,100,000)
2017 ($63,800,000) ($11,800,000) ($4,000,000) ($2,200,000)
2018 ($66,300,000) ($12,200,000) ($4,200,000) ($2,300,000)
2019 ($69,000,000) ($12,700,000) ($4,400,000) ($2,300,000)
2020 ($71,700,000) ($13,200,000) ($4,500,000) ($2,400,000)
Fiscal Analysis
The bill would amend Section 151.313 of the Tax Code, to provide for the exemption of certain health care supplies from the sales and use tax. Sections 151.313(a), (c), and (e) would be amended to expand the exemption of certain health care medicines, devices, appliances, parts, equipment, supplies, and systems used for treatment of a human to include such items when used in the treatment of an animal. With respect to treatment of animals, current law exempts only drugs or medicines when prescribed or dispensed by a licensed practitioner of the healing arts. The bill would take effect September 1, 2015.
Methodology
National expenditure data on pet supplies and over the counter medicine from the American Pet Products Association was apportioned to the state based on population, reduced to omit expenditures for pet supplies that are not health related, then multiplied by the sales tax rate to estimate the applicable sales tax. The sales tax on veterinary supplies and equipment was estimated using Comptroller and census data. Fiscal implications for units of local government were estimated proportionally.
Local Government Impact
There would be a corresponding loss of local sales and use tax revenue from local taxing jurisdictions. The losses are displayed in the above table.
Source Agencies: 304 Comptroller of Public Accounts
304 Comptroller of Public Accounts
LBB Staff: UP, KK, SD
UP, KK, SD