LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 84TH LEGISLATIVE REGULAR SESSION March 2, 2015 TO: Honorable Jane Nelson, Chair, Senate Committee on Finance FROM: Ursula Parks, Director, Legislative Budget Board IN RE:SB8 by Schwertner (Relating to the total revenue exemption for the franchise tax.), As Introduced Estimated Two-year Net Impact to General Revenue Related Funds for SB8, As Introduced: an impact of $0 through the biennium ending August 31, 2017. Additionally, the bill will have a direct impact of a revenue loss to the Property Tax Relief Fund of ($759,826,000) for the 2016-17 biennium. Any loss to the Property Tax Relief Fund must be made up with an equal amount of General Revenue to fund the Foundation School Program.
LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 84TH LEGISLATIVE REGULAR SESSION
March 2, 2015
TO: Honorable Jane Nelson, Chair, Senate Committee on Finance FROM: Ursula Parks, Director, Legislative Budget Board IN RE:SB8 by Schwertner (Relating to the total revenue exemption for the franchise tax.), As Introduced
TO: Honorable Jane Nelson, Chair, Senate Committee on Finance
FROM: Ursula Parks, Director, Legislative Budget Board
IN RE: SB8 by Schwertner (Relating to the total revenue exemption for the franchise tax.), 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
SB8 by Schwertner (Relating to the total revenue exemption for the franchise tax.), As Introduced
SB8 by Schwertner (Relating to the total revenue exemption for the franchise tax.), As Introduced
Estimated Two-year Net Impact to General Revenue Related Funds for SB8, As Introduced: an impact of $0 through the biennium ending August 31, 2017. Additionally, the bill will have a direct impact of a revenue loss to the Property Tax Relief Fund of ($759,826,000) for the 2016-17 biennium. Any loss to the Property Tax Relief Fund must be made up with an equal amount of General Revenue to fund the Foundation School Program.
Estimated Two-year Net Impact to General Revenue Related Funds for SB8, As Introduced: an impact of $0 through the biennium ending August 31, 2017.
Additionally, the bill will have a direct impact of a revenue loss to the Property Tax Relief Fund of ($759,826,000) for the 2016-17 biennium. Any loss to the Property Tax Relief Fund must be made up with an equal amount of General Revenue to fund the Foundation School Program.
General Revenue-Related Funds, Five-Year Impact: Fiscal Year Probable Net Positive/(Negative) Impact to General Revenue Related Funds 2016 $0 2017 $0 2018 $0 2019 $0 2020 $0
2016 $0
2017 $0
2018 $0
2019 $0
2020 $0
All Funds, Five-Year Impact: Fiscal Year Probable Revenue (Loss) fromProperty Tax Relief Fund304 2016 ($376,514,000) 2017 ($383,312,000) 2018 ($381,807,000) 2019 ($388,913,000) 2020 ($394,392,000)
Fiscal Year Probable Revenue (Loss) fromProperty Tax Relief Fund304 2016 ($376,514,000) 2017 ($383,312,000) 2018 ($381,807,000) 2019 ($388,913,000) 2020 ($394,392,000)
2016 ($376,514,000)
2017 ($383,312,000)
2018 ($381,807,000)
2019 ($388,913,000)
2020 ($394,392,000)
Fiscal Analysis
This bill would amend Chapter 171 of the Tax Code, regarding the franchise tax, by increasing the amount of total revenue below which a taxable entity would owe no tax. The current level is $1 million, and this bill would raise the amount to $4 million.
Methodology
The estimated fiscal impact of the bill is based on franchise tax liability of taxable entities with total revenue between $1 million and $4 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