LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 84TH LEGISLATIVE REGULAR SESSION May 15, 2015 TO: Honorable Jane Nelson, Chair, Senate Committee on Finance FROM: Ursula Parks, Director, Legislative Budget Board IN RE:SB1009 by Eltife (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.), Committee Report 1st House, Substituted Estimated Two-year Net Impact to General Revenue Related Funds for SB1009, Committee Report 1st House, Substituted: a negative impact of ($50,000,000) through the biennium ending August 31, 2017.
LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 84TH LEGISLATIVE REGULAR SESSION
May 15, 2015
TO: Honorable Jane Nelson, Chair, Senate Committee on Finance FROM: Ursula Parks, Director, Legislative Budget Board IN RE:SB1009 by Eltife (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.), Committee Report 1st House, Substituted
TO: Honorable Jane Nelson, Chair, Senate Committee on Finance
FROM: Ursula Parks, Director, Legislative Budget Board
IN RE: SB1009 by Eltife (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.), Committee Report 1st House, Substituted
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
SB1009 by Eltife (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.), Committee Report 1st House, Substituted
SB1009 by Eltife (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.), Committee Report 1st House, Substituted
Estimated Two-year Net Impact to General Revenue Related Funds for SB1009, Committee Report 1st House, Substituted: a negative impact of ($50,000,000) through the biennium ending August 31, 2017.
Estimated Two-year Net Impact to General Revenue Related Funds for SB1009, Committee Report 1st House, Substituted: a negative impact of ($50,000,000) 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 ($25,000,000) 2017 ($25,000,000) 2018 ($25,000,000) 2019 ($25,000,000) 2020 ($25,000,000)
2016 ($25,000,000)
2017 ($25,000,000)
2018 ($25,000,000)
2019 ($25,000,000)
2020 ($25,000,000)
All Funds, Five-Year Impact: Fiscal Year Probable Revenue (Loss) fromGeneral Revenue Fund1 2016 ($25,000,000) 2017 ($25,000,000) 2018 ($25,000,000) 2019 ($25,000,000) 2020 ($25,000,000)
Fiscal Year Probable Revenue (Loss) fromGeneral Revenue Fund1 2016 ($25,000,000) 2017 ($25,000,000) 2018 ($25,000,000) 2019 ($25,000,000) 2020 ($25,000,000)
2016 ($25,000,000)
2017 ($25,000,000)
2018 ($25,000,000)
2019 ($25,000,000)
2020 ($25,000,000)
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 $75 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 $75 million limit, and the amount of refunds paid each year under the section will be $75 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