LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 87TH LEGISLATIVE REGULAR SESSION April 16, 2021 TO: Honorable Morgan Meyer, Chair, House Committee on Ways & Means FROM: Jerry McGinty, Director, Legislative Budget Board IN RE: HB321 by Howard (Relating to a sales and use tax exemption for certain feminine hygiene products.), As Introduced Estimated Two-year Net Impact to General Revenue Related Funds for HB321, As Introduced : a negative impact of ($40,157,000) through the biennium ending August 31, 2023.Additionally, the bill will have a direct impact of a revenue loss to the Tax Reduction and Excellence in Education Fund of ($1,456,000) for the 2022-23 biennium. Any loss to the Tax Reduction and Excellence in Education 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 toGeneral Revenue Related Funds2022($18,859,000)2023($21,298,000)2024($22,041,000)2025($22,813,000)2026($23,614,000)All Funds, Five-Year Impact: Fiscal Year Probable Revenue (Loss) fromGeneral Revenue Fund1 Probable Savings/(Cost) fromTax Reduc. & Excell. Edu. Fund305 Probable Revenue (Loss) fromCities Probable Revenue (Loss) fromTransit Authorities2022($18,859,000)($684,000)($3,590,000)($1,200,000)2023($21,298,000)($772,000)($4,050,000)($1,360,000)2024($22,041,000)($799,000)($4,190,000)($1,410,000)2025($22,813,000)($827,000)($4,340,000)($1,460,000)2026($23,614,000)($856,000)($4,490,000)($1,510,000)Fiscal Year Probable Revenue (Loss) fromCounties & Special Districts2022($780,000)2023($880,000)2024($910,000)2025($940,000)2026($980,000) Fiscal AnalysisThe bill would amend Chapter 151 of the Tax Code, to add Section 151.3131, to provide for exemption of certain feminine hygiene products from the sales and use tax.The new section would define "feminine hygiene products" to include tampons, sanitary napkins, menstrual cups, menstrual sponges, menstrual pads, and other similar tangible personal property sold for the principal purpose of feminine hygiene related to the menstrual cycle.The bill would take effect September 1, 2021.
LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 87TH LEGISLATIVE REGULAR SESSION
April 16, 2021
TO: Honorable Morgan Meyer, Chair, House Committee on Ways & Means FROM: Jerry McGinty, Director, Legislative Budget Board IN RE: HB321 by Howard (Relating to a sales and use tax exemption for certain feminine hygiene products.), As Introduced
TO: Honorable Morgan Meyer, Chair, House Committee on Ways & Means
FROM: Jerry McGinty, Director, Legislative Budget Board
IN RE: HB321 by Howard (Relating to a sales and use tax exemption for certain feminine hygiene products.), 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
HB321 by Howard (Relating to a sales and use tax exemption for certain feminine hygiene products.), As Introduced
HB321 by Howard (Relating to a sales and use tax exemption for certain feminine hygiene products.), As Introduced
Estimated Two-year Net Impact to General Revenue Related Funds for HB321, As Introduced : a negative impact of ($40,157,000) through the biennium ending August 31, 2023.Additionally, the bill will have a direct impact of a revenue loss to the Tax Reduction and Excellence in Education Fund of ($1,456,000) for the 2022-23 biennium. Any loss to the Tax Reduction and Excellence in Education 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 HB321, As Introduced : a negative impact of ($40,157,000) through the biennium ending August 31, 2023.Additionally, the bill will have a direct impact of a revenue loss to the Tax Reduction and Excellence in Education Fund of ($1,456,000) for the 2022-23 biennium. Any loss to the Tax Reduction and Excellence in Education Fund must be made up with an equal amount of General Revenue to fund the Foundation School Program.
Additionally, the bill will have a direct impact of a revenue loss to the Tax Reduction and Excellence in Education Fund of ($1,456,000) for the 2022-23 biennium. Any loss to the Tax Reduction and Excellence in Education 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:
2022 ($18,859,000)
2023 ($21,298,000)
2024 ($22,041,000)
2025 ($22,813,000)
2026 ($23,614,000)
All Funds, Five-Year Impact:
2022 ($18,859,000) ($684,000) ($3,590,000) ($1,200,000)
2023 ($21,298,000) ($772,000) ($4,050,000) ($1,360,000)
2024 ($22,041,000) ($799,000) ($4,190,000) ($1,410,000)
2025 ($22,813,000) ($827,000) ($4,340,000) ($1,460,000)
2026 ($23,614,000) ($856,000) ($4,490,000) ($1,510,000)
2022 ($780,000)
2023 ($880,000)
2024 ($910,000)
2025 ($940,000)
2026 ($980,000)
Fiscal Analysis
The bill would amend Chapter 151 of the Tax Code, to add Section 151.3131, to provide for exemption of certain feminine hygiene products from the sales and use tax.The new section would define "feminine hygiene products" to include tampons, sanitary napkins, menstrual cups, menstrual sponges, menstrual pads, and other similar tangible personal property sold for the principal purpose of feminine hygiene related to the menstrual cycle.The bill would take effect September 1, 2021.
Methodology
The Comptroller indicates that industry data on national sales of sanitary protection products were apportioned to the state based on female population, reduced to omit estimated non-taxable sales to entities such as nonprofit organizations, multiplied by the sales tax rate to estimate the applicable sales tax, and extrapolated through 2026. An estimated amount of tax attributable to sales made by marketplace sellers was allocated to the Tax Reduction and Excellence in Education (TREE) Fund.
Local Government Impact
Estimated loss of sales and use tax revenue from units of local government was 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