LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 88TH LEGISLATIVE REGULAR SESSION March 10, 2023 TO: Honorable Joan Huffman, Chair, Senate Committee on Finance FROM: Jerry McGinty, Director, Legislative Budget Board IN RE: SJR24 by Springer (Proposing a constitutional amendment prohibiting the enactment of a law imposing an occupation tax on certain entities that enter into transactions conveying securities or imposing a tax on certain securities transactions.), As Introduced No significant fiscal implication to the State is anticipated, other than the cost of publication. The cost to the state for publication of the resolution is $204,406. The resolution would propose an amendment to Article VIII (Taxation and Revenue) of the Texas Constitution to prohibit the enactment of an occupation tax on Registered Securities Market Operators, or the enactment of a tax on securities transactions conducted by these entities.The proposed amendment, if approved by the voters, would state that certain taxes could not be enacted; no guidance regarding treatment of existing taxes potentially of a prohibited type, or a date after which such enactment would result in an unconstitutional tax, is given. The amendment would exempt from the prohibition a number tax types, one type of fee, and the change in rate of a tax in existence on January 1, 2024. The proposed amendment's language with regard to the effect of its provisions on extant taxes is not unambiguous; however, and solely for the purposes of this analysis and looking at the entirety of the proposed amendment, it is assumed any current state taxes that would otherwise meet all the conditions for prohibition would remain in force after enactment of the proposed amendment.Therefore, this proposed amendment to the constitution would have no fiscal implications as it is assumed that it would not affect any current taxes and would prohibit the enactment of certain taxes only in future time periods. If the assumptions above regarding the prospective nature of the prohibition on enactment were to prove incorrect (e.g., following the final adjudication of litigation) the fiscal implications of this proposed amendment could be quite different. If taxes, in existence and producing revenue today, were to be found unconstitutional there could be significant revenue loss. The proposed amendment would be submitted to voters at an election to be held November 7, 2023. Local Government ImpactNo fiscal implication to units of local government is anticipated. Source Agencies: b > td > 304 Comptroller of Public Accounts LBB Staff: b > td > JMc, KK, SD
LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 88TH LEGISLATIVE REGULAR SESSION
March 10, 2023
TO: Honorable Joan Huffman, Chair, Senate Committee on Finance FROM: Jerry McGinty, Director, Legislative Budget Board IN RE: SJR24 by Springer (Proposing a constitutional amendment prohibiting the enactment of a law imposing an occupation tax on certain entities that enter into transactions conveying securities or imposing a tax on certain securities transactions.), As Introduced
TO: Honorable Joan Huffman, Chair, Senate Committee on Finance
FROM: Jerry McGinty, Director, Legislative Budget Board
IN RE: SJR24 by Springer (Proposing a constitutional amendment prohibiting the enactment of a law imposing an occupation tax on certain entities that enter into transactions conveying securities or imposing a tax on certain securities transactions.), As Introduced
Honorable Joan Huffman, Chair, Senate Committee on Finance
Honorable Joan Huffman, Chair, Senate Committee on Finance
Jerry McGinty, Director, Legislative Budget Board
Jerry McGinty, Director, Legislative Budget Board
SJR24 by Springer (Proposing a constitutional amendment prohibiting the enactment of a law imposing an occupation tax on certain entities that enter into transactions conveying securities or imposing a tax on certain securities transactions.), As Introduced
SJR24 by Springer (Proposing a constitutional amendment prohibiting the enactment of a law imposing an occupation tax on certain entities that enter into transactions conveying securities or imposing a tax on certain securities transactions.), As Introduced
No significant fiscal implication to the State is anticipated, other than the cost of publication. The cost to the state for publication of the resolution is $204,406.
No significant fiscal implication to the State is anticipated, other than the cost of publication. The cost to the state for publication of the resolution is $204,406.
The resolution would propose an amendment to Article VIII (Taxation and Revenue) of the Texas Constitution to prohibit the enactment of an occupation tax on Registered Securities Market Operators, or the enactment of a tax on securities transactions conducted by these entities.The proposed amendment, if approved by the voters, would state that certain taxes could not be enacted; no guidance regarding treatment of existing taxes potentially of a prohibited type, or a date after which such enactment would result in an unconstitutional tax, is given. The amendment would exempt from the prohibition a number tax types, one type of fee, and the change in rate of a tax in existence on January 1, 2024. The proposed amendment's language with regard to the effect of its provisions on extant taxes is not unambiguous; however, and solely for the purposes of this analysis and looking at the entirety of the proposed amendment, it is assumed any current state taxes that would otherwise meet all the conditions for prohibition would remain in force after enactment of the proposed amendment.Therefore, this proposed amendment to the constitution would have no fiscal implications as it is assumed that it would not affect any current taxes and would prohibit the enactment of certain taxes only in future time periods. If the assumptions above regarding the prospective nature of the prohibition on enactment were to prove incorrect (e.g., following the final adjudication of litigation) the fiscal implications of this proposed amendment could be quite different. If taxes, in existence and producing revenue today, were to be found unconstitutional there could be significant revenue loss. The proposed amendment would be submitted to voters at an election to be held November 7, 2023.
The proposed amendment would be submitted to voters at an election to be held November 7, 2023.
Local Government Impact
No fiscal implication to units of local government is anticipated.
Source Agencies: b > td > 304 Comptroller of Public Accounts
304 Comptroller of Public Accounts
LBB Staff: b > td > JMc, KK, SD
JMc, KK, SD