LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 85TH LEGISLATIVE REGULAR SESSION May 8, 2017 TO: Honorable Dennis Bonnen, Chair, House Committee on Ways & Means FROM: Ursula Parks, Director, Legislative Budget Board IN RE:SB1083 by Perry (Relating to the applicability of the sales and use tax to certain insurance services.), As Engrossed No significant fiscal implication to the State is anticipated. The bill would amend Chapter 151 of the Tax Code, regarding sales and use taxation of certain insurance services. Section 151.0039 would be amended to exclude from the definition of "insurance service", and thus from taxability, a service performed by a licensed certified public accountancy firm, or on behalf of the firm by an owner or affiliate, if less than one percent of the total revenue of the firm, owner, or affiliate, as applicable, in a calendar year is from services that otherwise constitute insurance service.The de minimus standard proposed by the bill regarding the portion of a public accountancy firm's revenue that may be from otherwise taxable insurance services is sufficient to ensure that the exemption of such services would not result in significant revenue implications. This bill would take effect January 1, 2018. 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, 85TH LEGISLATIVE REGULAR SESSION
May 8, 2017
TO: Honorable Dennis Bonnen, Chair, House Committee on Ways & Means FROM: Ursula Parks, Director, Legislative Budget Board IN RE:SB1083 by Perry (Relating to the applicability of the sales and use tax to certain insurance services.), As Engrossed
TO: Honorable Dennis Bonnen, Chair, House Committee on Ways & Means
FROM: Ursula Parks, Director, Legislative Budget Board
IN RE: SB1083 by Perry (Relating to the applicability of the sales and use tax to certain insurance services.), As Engrossed
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
SB1083 by Perry (Relating to the applicability of the sales and use tax to certain insurance services.), As Engrossed
SB1083 by Perry (Relating to the applicability of the sales and use tax to certain insurance services.), As Engrossed
No significant fiscal implication to the State is anticipated.
No significant fiscal implication to the State is anticipated.
The bill would amend Chapter 151 of the Tax Code, regarding sales and use taxation of certain insurance services. Section 151.0039 would be amended to exclude from the definition of "insurance service", and thus from taxability, a service performed by a licensed certified public accountancy firm, or on behalf of the firm by an owner or affiliate, if less than one percent of the total revenue of the firm, owner, or affiliate, as applicable, in a calendar year is from services that otherwise constitute insurance service.The de minimus standard proposed by the bill regarding the portion of a public accountancy firm's revenue that may be from otherwise taxable insurance services is sufficient to ensure that the exemption of such services would not result in significant revenue implications. This bill would take effect January 1, 2018.
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