LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 85TH LEGISLATIVE REGULAR SESSION April 18, 2017 TO: Honorable Dennis Bonnen, Chair, House Committee on Ways & Means FROM: Ursula Parks, Director, Legislative Budget Board IN RE:HB824 by Turner (Relating to an exemption from the sales and use tax for certain lightbulbs for a limited period.), As Introduced Estimated Two-year Net Impact to General Revenue Related Funds for HB824, As Introduced: a negative impact of ($1,270,000) through the biennium ending August 31, 2019.
LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 85TH LEGISLATIVE REGULAR SESSION
April 18, 2017
TO: Honorable Dennis Bonnen, Chair, House Committee on Ways & Means FROM: Ursula Parks, Director, Legislative Budget Board IN RE:HB824 by Turner (Relating to an exemption from the sales and use tax for certain lightbulbs for a limited period.), As Introduced
TO: Honorable Dennis Bonnen, Chair, House Committee on Ways & Means
FROM: Ursula Parks, Director, Legislative Budget Board
IN RE: HB824 by Turner (Relating to an exemption from the sales and use tax for certain lightbulbs for a limited period.), As Introduced
Honorable Dennis Bonnen, Chair, House Committee on Ways & Means
Honorable Dennis Bonnen, Chair, House Committee on Ways & Means
Ursula Parks, Director, Legislative Budget Board
Ursula Parks, Director, Legislative Budget Board
HB824 by Turner (Relating to an exemption from the sales and use tax for certain lightbulbs for a limited period.), As Introduced
HB824 by Turner (Relating to an exemption from the sales and use tax for certain lightbulbs for a limited period.), As Introduced
Estimated Two-year Net Impact to General Revenue Related Funds for HB824, As Introduced: a negative impact of ($1,270,000) through the biennium ending August 31, 2019.
Estimated Two-year Net Impact to General Revenue Related Funds for HB824, As Introduced: a negative impact of ($1,270,000) through the biennium ending August 31, 2019.
General Revenue-Related Funds, Five-Year Impact: Fiscal Year Probable Net Positive/(Negative) Impact to General Revenue Related Funds 2018 $0 2019 ($1,270,000) 2020 ($1,650,000) 2021 ($2,140,000) 2022 ($2,780,000)
2018 $0
2019 ($1,270,000)
2020 ($1,650,000)
2021 ($2,140,000)
2022 ($2,780,000)
All Funds, Five-Year Impact: Fiscal Year Probable Revenue (Loss) fromGeneral Revenue Fund1 Probable Revenue (Loss) fromState Highway Fund6 Probable Revenue (Loss) fromCities Probable Revenue (Loss) fromTransit Authorities 2018 $0 ($980,000) ($190,000) ($60,000) 2019 ($1,270,000) $0 ($240,000) ($80,000) 2020 ($1,650,000) $0 ($320,000) ($110,000) 2021 ($2,140,000) $0 ($410,000) ($140,000) 2022 ($2,780,000) $0 ($530,000) ($180,000) Fiscal Year Probable Revenue (Loss) fromCounties and Special Districts 2018 ($30,000) 2019 ($40,000) 2020 ($60,000) 2021 ($70,000) 2022 ($100,000)
Fiscal Year Probable Revenue (Loss) fromGeneral Revenue Fund1 Probable Revenue (Loss) fromState Highway Fund6 Probable Revenue (Loss) fromCities Probable Revenue (Loss) fromTransit Authorities 2018 $0 ($980,000) ($190,000) ($60,000) 2019 ($1,270,000) $0 ($240,000) ($80,000) 2020 ($1,650,000) $0 ($320,000) ($110,000) 2021 ($2,140,000) $0 ($410,000) ($140,000) 2022 ($2,780,000) $0 ($530,000) ($180,000)
2018 $0 ($980,000) ($190,000) ($60,000)
2019 ($1,270,000) $0 ($240,000) ($80,000)
2020 ($1,650,000) $0 ($320,000) ($110,000)
2021 ($2,140,000) $0 ($410,000) ($140,000)
2022 ($2,780,000) $0 ($530,000) ($180,000)
Fiscal Year Probable Revenue (Loss) fromCounties and Special Districts 2018 ($30,000) 2019 ($40,000) 2020 ($60,000) 2021 ($70,000) 2022 ($100,000)
2018 ($30,000)
2019 ($40,000)
2020 ($60,000)
2021 ($70,000)
2022 ($100,000)
Fiscal Analysis
The bill would amend Section 151.333(b) of the Tax code to add light-emitting diode (LED) lightbulbs to the list of eligible items exempt from the sales and use tax for a limited period. The bill would take effect September 1, 2017.
Methodology
National data on annual shipments of units of LED light bulbs from the U.S. Department of Energy was apportioned to the state based on population, priced based on industry data, reduced to a portion expected to be sold within the exemption period, multiplied by the state sales tax rate, then extrapolated through 2022. Pursuant to Proposition 7 (2015), any sales tax collections in excess of $28 billion and less than $30.5 billion will be deposited into the State Highway Fund. Because total 2018 collections are projected to fall in that range, the 2018 revenue loss is from the State Highway Fund instead of General Revenue in the scenario where the bill takes immediate effect.
Local Government Impact
The loss of sales and use tax revenue from units of local government were estimated proportionally.
Source Agencies: 304 Comptroller of Public Accounts
304 Comptroller of Public Accounts
LBB Staff: UP, KK
UP, KK