LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 87TH LEGISLATIVE REGULAR SESSION April 11, 2021 TO: Honorable Jane Nelson, Chair, Senate Committee on Finance FROM: Jerry McGinty, Director, Legislative Budget Board IN RE: SB313 by Huffman (Relating to a sales and use tax exemption for firearm safety equipment.), As Introduced Estimated Two-year Net Impact to General Revenue Related Funds for SB313, As Introduced : a negative impact of ($1,590,000) 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($740,000)2023($850,000)2024($900,000)2025($950,000)2026($1,000,000)All Funds, Five-Year Impact: Fiscal Year Probable Revenue (Loss) fromGeneral Revenue Fund1 Probable Revenue (Loss) fromTax Reduc. & Excell. Edu. Fund305 Probable Revenue (Loss) fromCities Probable Revenue (Loss) fromTransit Authorities2022($740,000)($30,000)($140,000)($50,000)2023($850,000)($30,000)($160,000)($50,000)2024($900,000)($30,000)($170,000)($60,000)2025($950,000)($30,000)($180,000)($60,000)2026($1,000,000)($40,000)($190,000)($60,000)Fiscal Year Probable Revenue (Loss) fromCounties & Special Districts2022($30,000)2023($40,000)2024($40,000)2025($40,000)2026($40,000) Fiscal AnalysisThe bill would amend Chapter 151 of the Tax Code by adding Section 151.3131 to provide an exemption of firearm safety equipment from sales and use taxes.The new section would define "firearm safety equipment" to include a gun lock box, a gun safe, a barrel lock, a trigger lock, and other items designed to ensure the safe handling or storage of a firearm.The bill would take effect September 1, 2021.
LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 87TH LEGISLATIVE REGULAR SESSION
April 11, 2021
TO: Honorable Jane Nelson, Chair, Senate Committee on Finance FROM: Jerry McGinty, Director, Legislative Budget Board IN RE: SB313 by Huffman (Relating to a sales and use tax exemption for firearm safety equipment.), As Introduced
TO: Honorable Jane Nelson, Chair, Senate Committee on Finance
FROM: Jerry McGinty, Director, Legislative Budget Board
IN RE: SB313 by Huffman (Relating to a sales and use tax exemption for firearm safety equipment.), As Introduced
Honorable Jane Nelson, Chair, Senate Committee on Finance
Honorable Jane Nelson, Chair, Senate Committee on Finance
Jerry McGinty, Director, Legislative Budget Board
Jerry McGinty, Director, Legislative Budget Board
SB313 by Huffman (Relating to a sales and use tax exemption for firearm safety equipment.), As Introduced
SB313 by Huffman (Relating to a sales and use tax exemption for firearm safety equipment.), As Introduced
Estimated Two-year Net Impact to General Revenue Related Funds for SB313, As Introduced : a negative impact of ($1,590,000) through the biennium ending August 31, 2023.
Estimated Two-year Net Impact to General Revenue Related Funds for SB313, As Introduced : a negative impact of ($1,590,000) through the biennium ending August 31, 2023.
General Revenue-Related Funds, Five- Year Impact:
2022 ($740,000)
2023 ($850,000)
2024 ($900,000)
2025 ($950,000)
2026 ($1,000,000)
All Funds, Five-Year Impact:
2022 ($740,000) ($30,000) ($140,000) ($50,000)
2023 ($850,000) ($30,000) ($160,000) ($50,000)
2024 ($900,000) ($30,000) ($170,000) ($60,000)
2025 ($950,000) ($30,000) ($180,000) ($60,000)
2026 ($1,000,000) ($40,000) ($190,000) ($60,000)
2022 ($30,000)
2023 ($40,000)
2024 ($40,000)
2025 ($40,000)
2026 ($40,000)
Fiscal Analysis
The bill would amend Chapter 151 of the Tax Code by adding Section 151.3131 to provide an exemption of firearm safety equipment from sales and use taxes.The new section would define "firearm safety equipment" to include a gun lock box, a gun safe, a barrel lock, a trigger lock, and other items designed to ensure the safe handling or storage of a firearm.The bill would take effect September 1, 2021.
Methodology
The Comptroller estimated tax revenue loss resulting from the bill based on information from a sample of firearms dealers. A ratio of sales of firearms safety devices to total sales of firearms dealers was applied to estimated sales of firearms, ammunition, and related accessories in the state, multiplied by the state sales tax rate, and extrapolated through 2026.
Local Government Impact
There would be a proportional loss of sales and use tax revenue from units of local government.
Source Agencies: b > td > 304 Comptroller of Public Accounts
304 Comptroller of Public Accounts
LBB Staff: b > td > JMc, KK, SD
JMc, KK, SD