LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 84TH LEGISLATIVE REGULAR SESSION Revision 1 March 6, 2015 TO: Honorable Jane Nelson, Chair, Senate Committee on Finance FROM: Ursula Parks, Director, Legislative Budget Board IN RE:SB140 by Perry (Relating to a sales and use tax exemption for telecommunications services used for the navigation of certain farm and ranch machinery and equipment.), As Introduced No significant fiscal implication to the State is anticipated. The bill would amend Subsection (a) of Section 151.316 of the Tax Code, relating to the exemption of certain agricultural items from the sales and use tax. The bill would exempt telecommunications services used for the navigation of certain farm and ranch machinery and equipment from the sales and use tax. To qualify for the exemption, the telecommunications services must exclusively be provided or used for the navigation of machinery and equipment exclusively used or employed on a farm or ranch in the building or maintaining of roads or water facilities, or in the production of food for human consumption, grass, feed for animals, or other agricultural products to be sold in the regular course of business.There would be a small loss of sales and use tax collections from exempting the telecommunication services described by the bill, however the loss is not expected to be significant. The bill would take effect September 1, 2015. Local Government Impact No significant fiscal implication to units of local government is anticipated. Source Agencies:304 Comptroller of Public Accounts LBB Staff: UP, KK, SD
LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 84TH LEGISLATIVE REGULAR SESSION
Revision 1
March 6, 2015
Revision 1
Revision 1
TO: Honorable Jane Nelson, Chair, Senate Committee on Finance FROM: Ursula Parks, Director, Legislative Budget Board IN RE:SB140 by Perry (Relating to a sales and use tax exemption for telecommunications services used for the navigation of certain farm and ranch machinery and equipment.), As Introduced
TO: Honorable Jane Nelson, Chair, Senate Committee on Finance
FROM: Ursula Parks, Director, Legislative Budget Board
IN RE: SB140 by Perry (Relating to a sales and use tax exemption for telecommunications services used for the navigation of certain farm and ranch machinery and equipment.), 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
SB140 by Perry (Relating to a sales and use tax exemption for telecommunications services used for the navigation of certain farm and ranch machinery and equipment.), As Introduced
SB140 by Perry (Relating to a sales and use tax exemption for telecommunications services used for the navigation of certain farm and ranch machinery and equipment.), As Introduced
No significant fiscal implication to the State is anticipated.
No significant fiscal implication to the State is anticipated.
The bill would amend Subsection (a) of Section 151.316 of the Tax Code, relating to the exemption of certain agricultural items from the sales and use tax. The bill would exempt telecommunications services used for the navigation of certain farm and ranch machinery and equipment from the sales and use tax. To qualify for the exemption, the telecommunications services must exclusively be provided or used for the navigation of machinery and equipment exclusively used or employed on a farm or ranch in the building or maintaining of roads or water facilities, or in the production of food for human consumption, grass, feed for animals, or other agricultural products to be sold in the regular course of business.There would be a small loss of sales and use tax collections from exempting the telecommunication services described by the bill, however the loss is not expected to be significant. The bill would take effect September 1, 2015.
Local Government Impact
No significant 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