LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 84TH LEGISLATIVE REGULAR SESSION May 13, 2015 TO: Honorable Jane Nelson, Chair, Senate Committee on Finance 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 Engrossed Estimated Two-year Net Impact to General Revenue Related Funds for HB633, As Engrossed: a negative impact of ($4,900,000) through the biennium ending August 31, 2017.
LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 84TH LEGISLATIVE REGULAR SESSION
May 13, 2015
TO: Honorable Jane Nelson, Chair, Senate Committee on Finance 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 Engrossed
TO: Honorable Jane Nelson, Chair, Senate Committee on Finance
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 Engrossed
Honorable Jane Nelson, Chair, Senate Committee on Finance
Honorable Jane Nelson, Chair, Senate Committee on Finance
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 Engrossed
HB633 by Bonnen, Greg (Relating to a sales and use tax exemption for certain health care supplies.), As Engrossed
Estimated Two-year Net Impact to General Revenue Related Funds for HB633, As Engrossed: a negative impact of ($4,900,000) through the biennium ending August 31, 2017.
Estimated Two-year Net Impact to General Revenue Related Funds for HB633, As Engrossed: a negative impact of ($4,900,000) 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 ($2,400,000) 2017 ($2,500,000) 2018 ($2,600,000) 2019 ($2,700,000) 2020 ($2,800,000)
2016 ($2,400,000)
2017 ($2,500,000)
2018 ($2,600,000)
2019 ($2,700,000)
2020 ($2,800,000)
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 ($2,400,000) ($400,000) ($200,000) ($100,000) 2017 ($2,500,000) ($500,000) ($200,000) ($100,000) 2018 ($2,600,000) ($500,000) ($200,000) ($100,000) 2019 ($2,700,000) ($500,000) ($200,000) ($100,000) 2020 ($2,800,000) ($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 ($2,400,000) ($400,000) ($200,000) ($100,000) 2017 ($2,500,000) ($500,000) ($200,000) ($100,000) 2018 ($2,600,000) ($500,000) ($200,000) ($100,000) 2019 ($2,700,000) ($500,000) ($200,000) ($100,000) 2020 ($2,800,000) ($500,000) ($200,000) ($100,000)
2016 ($2,400,000) ($400,000) ($200,000) ($100,000)
2017 ($2,500,000) ($500,000) ($200,000) ($100,000)
2018 ($2,600,000) ($500,000) ($200,000) ($100,000)
2019 ($2,700,000) ($500,000) ($200,000) ($100,000)
2020 ($2,800,000) ($500,000) ($200,000) ($100,000)
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. Section 151.313(a)(6) would be amended to expand the exemption of therapeutic appliances, devices, and related supplies to apply to animals as well as humans; and Section 151.313(a)(15) would be amended to expand the exemption of certain intravenous systems, supplies, and related replacement parts used for diagnosis or treatment to apply with respect to animals as well as humans. The bill would take effect September 1, 2015.
Methodology
National expenditure data on pet care from the American Pet Products Association was apportioned to the state based on population, reduced to a portion to represent expenditures on therapeutic appliances, devices and supplies, then multiplied by the sales tax rate to estimate the applicable sales tax. The sales tax on certain veterinary supplies and equipment was estimated using Comptroller and census data.
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