LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 89TH LEGISLATIVE REGULAR SESSION April 27, 2025 TO: Honorable Morgan Meyer, Chair, House Committee on Ways & Means FROM: Jerry McGinty, Director, Legislative Budget Board IN RE: HB2575 by Shaheen (Relating to the elimination of certain tax proceeds deposited to and the allocation of the horse industry escrowed purse account.), As Introduced Estimated Two-year Net Impact to General Revenue Related Funds for HB2575, As Introduced: a positive impact of $50,000,000 through the biennium ending August 31, 2027. The bill would make no appropriation but could provide the legal basis for an appropriation of funds to implement the provisions of the bill. General Revenue-Related Funds, Five- Year Impact: Fiscal Year Probable Net Positive/(Negative) Impact toGeneral Revenue Related Funds2026$25,000,0002027$25,000,0002028$25,000,0002029$25,000,0002030$25,000,000All Funds, Five-Year Impact: Fiscal Year Probable Revenue Gain/(Loss) fromGeneral Revenue Fund1 Probable Revenue Gain/(Loss) fromFund 0876 - Horse Industry Escrow Trust Account2026$25,000,000($25,000,000)2027$25,000,000($25,000,000)2028$25,000,000($25,000,000)2029$25,000,000($25,000,000)2030$25,000,000($25,000,000) Fiscal AnalysisThe bill would amend the Occupations Code and Tax Code to repeal provisions requiring the deposit of a portion of state sales and use tax proceeds to and the allocation of money from the Horse Industry Escrow Account. The bill would take effect on September 1, 2025.
LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 89TH LEGISLATIVE REGULAR SESSION
April 27, 2025
TO: Honorable Morgan Meyer, Chair, House Committee on Ways & Means FROM: Jerry McGinty, Director, Legislative Budget Board IN RE: HB2575 by Shaheen (Relating to the elimination of certain tax proceeds deposited to and the allocation of the horse industry escrowed purse account.), As Introduced
TO: Honorable Morgan Meyer, Chair, House Committee on Ways & Means
FROM: Jerry McGinty, Director, Legislative Budget Board
IN RE: HB2575 by Shaheen (Relating to the elimination of certain tax proceeds deposited to and the allocation of the horse industry escrowed purse account.), 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
HB2575 by Shaheen (Relating to the elimination of certain tax proceeds deposited to and the allocation of the horse industry escrowed purse account.), As Introduced
HB2575 by Shaheen (Relating to the elimination of certain tax proceeds deposited to and the allocation of the horse industry escrowed purse account.), As Introduced
Estimated Two-year Net Impact to General Revenue Related Funds for HB2575, As Introduced: a positive impact of $50,000,000 through the biennium ending August 31, 2027. The bill would make no appropriation but could provide the legal basis for an appropriation of funds to implement the provisions of the bill.
Estimated Two-year Net Impact to General Revenue Related Funds for HB2575, As Introduced: a positive impact of $50,000,000 through the biennium ending August 31, 2027. The bill would make no appropriation but could provide the legal basis for an appropriation of funds to implement the provisions of the bill.
The bill would make no appropriation but could provide the legal basis for an appropriation of funds to implement the provisions of the bill.
General Revenue-Related Funds, Five- Year Impact:
2026 $25,000,000
2027 $25,000,000
2028 $25,000,000
2029 $25,000,000
2030 $25,000,000
All Funds, Five-Year Impact:
2026 $25,000,000 ($25,000,000)
2027 $25,000,000 ($25,000,000)
2028 $25,000,000 ($25,000,000)
2029 $25,000,000 ($25,000,000)
2030 $25,000,000 ($25,000,000)
Fiscal Analysis
The bill would amend the Occupations Code and Tax Code to repeal provisions requiring the deposit of a portion of state sales and use tax proceeds to and the allocation of money from the Horse Industry Escrow Account. The bill would take effect on September 1, 2025.
Methodology
Under current law up to $50 million in sales tax revenue per biennium derived from the sale of horse feed, tack, and other horse-related products is transferred from the General Revenue Fund to Fund 0876 - Horse Industry Escrow Trust Account. The bill would end this transfer beginning on September 1, 2025. Based on the analysis provided by the Comptroller's office, the bill would result in a revenue gain of $25.0 million to the General Revenue Fund and a corresponding revenue loss to Fund 0876 in each fiscal year beginning in fiscal year 2026.
Local Government Impact
No fiscal implication to units of local government is anticipated.
Source Agencies: b > td > 304 Comptroller of Public Accounts, 476 Racing Commission
304 Comptroller of Public Accounts, 476 Racing Commission
LBB Staff: b > td > JMc, KK, GDZ, TG
JMc, KK, GDZ, TG