LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 87TH LEGISLATIVE REGULAR SESSION March 19, 2021 TO: Honorable Morgan Meyer, Chair, House Committee on Ways & Means FROM: Jerry McGinty, Director, Legislative Budget Board IN RE: HB2510 by Noble (Relating to a sales and use tax exemption for animals adopted from or sold by nonprofit animal welfare organizations.), As Introduced Estimated Two-year Net Impact to General Revenue Related Funds for HB2510, As Introduced : a negative impact of ($272,000) through the biennium ending August 31, 2023. General Revenue-Related Funds, Five- Year Impact: Fiscal Year Probable Net Positive/(Negative) Impact toGeneral Revenue Related Funds2022($121,000)2023($151,000)2024($159,000)2025($165,000)2026($173,000)All Funds, Five-Year Impact: Fiscal Year Probable Revenue (Loss) fromGeneral Revenue Fund1 Probable Revenue (Loss) fromCitiesLOCAL-CITY Probable Revenue (Loss) fromTransit AuthoritiesLOCAL-TRANSIT Probable Revenue (Loss) fromCounties and Special DistrictsLOCAL-COUNTY2022($121,000)($22,000)($7,000)($5,000)2023($151,000)($28,000)($9,000)($6,000)2024($159,000)($29,000)($10,000)($6,000)2025($165,000)($30,000)($10,000)($7,000)2026($173,000)($32,000)($11,000)($7,000) Fiscal AnalysisThe bill would amend Chapter 151, Tax Code to provide for exemption from sales and use tax of animals adopted from or sold by nonprofit animal welfare organizations.Section 151.343 provides for exemption of the sale, including acceptance of an adoption fee, of an animal by a nonprofit animal shelter. The section would be amended to include such sale by a nonprofit animal welfare organization, defined by Section 821.021, Health and Safety Code as a nonprofit organization having the purpose of preventing cruelty to animals or sheltering, caring for, or providing homes for lost, stray, and abandoned animals.The bill would take effect October 1, 2021.
LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 87TH LEGISLATIVE REGULAR SESSION
March 19, 2021
TO: Honorable Morgan Meyer, Chair, House Committee on Ways & Means FROM: Jerry McGinty, Director, Legislative Budget Board IN RE: HB2510 by Noble (Relating to a sales and use tax exemption for animals adopted from or sold by nonprofit animal welfare organizations.), As Introduced
TO: Honorable Morgan Meyer, Chair, House Committee on Ways & Means
FROM: Jerry McGinty, Director, Legislative Budget Board
IN RE: HB2510 by Noble (Relating to a sales and use tax exemption for animals adopted from or sold by nonprofit animal welfare organizations.), As Introduced
Honorable Morgan Meyer, Chair, House Committee on Ways & Means
Honorable Morgan Meyer, Chair, House Committee on Ways & Means
Jerry McGinty, Director, Legislative Budget Board
Jerry McGinty, Director, Legislative Budget Board
HB2510 by Noble (Relating to a sales and use tax exemption for animals adopted from or sold by nonprofit animal welfare organizations.), As Introduced
HB2510 by Noble (Relating to a sales and use tax exemption for animals adopted from or sold by nonprofit animal welfare organizations.), As Introduced
Estimated Two-year Net Impact to General Revenue Related Funds for HB2510, As Introduced : a negative impact of ($272,000) through the biennium ending August 31, 2023.
Estimated Two-year Net Impact to General Revenue Related Funds for HB2510, As Introduced : a negative impact of ($272,000) through the biennium ending August 31, 2023.
General Revenue-Related Funds, Five- Year Impact:
2022 ($121,000)
2023 ($151,000)
2024 ($159,000)
2025 ($165,000)
2026 ($173,000)
All Funds, Five-Year Impact:
2022 ($121,000) ($22,000) ($7,000) ($5,000)
2023 ($151,000) ($28,000) ($9,000) ($6,000)
2024 ($159,000) ($29,000) ($10,000) ($6,000)
2025 ($165,000) ($30,000) ($10,000) ($7,000)
2026 ($173,000) ($32,000) ($11,000) ($7,000)
Fiscal Analysis
The bill would amend Chapter 151, Tax Code to provide for exemption from sales and use tax of animals adopted from or sold by nonprofit animal welfare organizations.Section 151.343 provides for exemption of the sale, including acceptance of an adoption fee, of an animal by a nonprofit animal shelter. The section would be amended to include such sale by a nonprofit animal welfare organization, defined by Section 821.021, Health and Safety Code as a nonprofit organization having the purpose of preventing cruelty to animals or sheltering, caring for, or providing homes for lost, stray, and abandoned animals.The bill would take effect October 1, 2021.
Methodology
Comptroller taxpayer data on sales tax remittances from organizations whose sales and receipts of adoption fees would be exempted by the bill were extrapolated through fiscal year 2026 and adjusted for the effective date of the bill.
Local Government Impact
Sales and use tax revenue loss for units of local government were estimated proportionally
Source Agencies: b > td > 304 Comptroller of Public Accounts
304 Comptroller of Public Accounts
LBB Staff: b > td > JMc, KK, SD
JMc, KK, SD