LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 84TH LEGISLATIVE REGULAR SESSION April 6, 2015 TO: Honorable Jane Nelson, Chair, Senate Committee on Finance FROM: Ursula Parks, Director, Legislative Budget Board IN RE:SB1356 by Hinojosa (Relating to exemption from the sales tax for certain water-efficient products for a limited period.), As Introduced Estimated Two-year Net Impact to General Revenue Related Funds for SB1356, As Introduced: a negative impact of ($4,290,000) through the biennium ending August 31, 2017.
LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 84TH LEGISLATIVE REGULAR SESSION
April 6, 2015
TO: Honorable Jane Nelson, Chair, Senate Committee on Finance FROM: Ursula Parks, Director, Legislative Budget Board IN RE:SB1356 by Hinojosa (Relating to exemption from the sales tax for certain water-efficient products for a limited period.), As Introduced
TO: Honorable Jane Nelson, Chair, Senate Committee on Finance
FROM: Ursula Parks, Director, Legislative Budget Board
IN RE: SB1356 by Hinojosa (Relating to exemption from the sales tax for certain water-efficient products for a limited period.), As Introduced
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
SB1356 by Hinojosa (Relating to exemption from the sales tax for certain water-efficient products for a limited period.), As Introduced
SB1356 by Hinojosa (Relating to exemption from the sales tax for certain water-efficient products for a limited period.), As Introduced
Estimated Two-year Net Impact to General Revenue Related Funds for SB1356, As Introduced: a negative impact of ($4,290,000) through the biennium ending August 31, 2017.
Estimated Two-year Net Impact to General Revenue Related Funds for SB1356, As Introduced: a negative impact of ($4,290,000) 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 ($2,100,000) 2017 ($2,190,000) 2018 ($2,280,000) 2019 ($2,370,000) 2020 ($2,460,000)
2016 ($2,100,000)
2017 ($2,190,000)
2018 ($2,280,000)
2019 ($2,370,000)
2020 ($2,460,000)
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 ($2,100,000) ($390,000) ($89,000) ($71,000) 2017 ($2,190,000) ($400,000) ($92,000) ($74,000) 2018 ($2,280,000) ($420,000) ($96,000) ($77,000) 2019 ($2,370,000) ($440,000) ($100,000) ($80,000) 2020 ($2,460,000) ($450,000) ($104,000) ($84,000)
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 ($2,100,000) ($390,000) ($89,000) ($71,000) 2017 ($2,190,000) ($400,000) ($92,000) ($74,000) 2018 ($2,280,000) ($420,000) ($96,000) ($77,000) 2019 ($2,370,000) ($440,000) ($100,000) ($80,000) 2020 ($2,460,000) ($450,000) ($104,000) ($84,000)
2016 ($2,100,000) ($390,000) ($89,000) ($71,000)
2017 ($2,190,000) ($400,000) ($92,000) ($74,000)
2018 ($2,280,000) ($420,000) ($96,000) ($77,000)
2019 ($2,370,000) ($440,000) ($100,000) ($80,000)
2020 ($2,460,000) ($450,000) ($104,000) ($84,000)
Fiscal Analysis
The bill would amend Chapter 151 of the Tax Code, regarding the sales and use tax, to provide for a sales tax holiday for certain water efficient products. The bill would add new Section 151.3335 to provide a "WaterSense product" as certified under the U.S. Environmental Protection Agency WaterSense program, would be exempt from the sales and use tax during the period beginning at 12:01 a.m. on the Saturday preceding the last Monday in May (Memorial Day) and ending at 11:59 p.m. on the last Monday in May. This bill would take effect July 1, 2015, assuming it received the requisite two-thirds majority votes in both houses of the Legislature. Otherwise, it would take effect October 1, 2015.
Methodology
Data was gathered from Comptroller tax files regarding the amount of taxable sales made by certain retailers selling the products subject to the provisions of the bill. An adjustment was made to estimate their share of sales for the subject items and for the time period, multiplied by the tax rate, and extrapolated through fiscal 2020. The fiscal impacts on units of local government were estimated proportionally. The fiscal impacts would be the same whether the bill takes effect July 1 or October 1, 2015.
Local Government Impact
There would be a proportional loss of sales and use tax revenue from local taxing jurisdictions as shown in the above table.
Source Agencies: 304 Comptroller of Public Accounts
304 Comptroller of Public Accounts
LBB Staff: UP, KK, SD
UP, KK, SD