LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 89TH LEGISLATIVE REGULAR SESSION April 7, 2025 TO: Honorable Joan Huffman, Chair, Senate Committee on Finance FROM: Jerry McGinty, Director, Legislative Budget Board IN RE: SB1030 by Nichols (Relating to the exemption from sales and use taxes for certain aircraft components and other property required for normal aircraft operations.), As Introduced Estimated Two-year Net Impact to General Revenue Related Funds for SB1030, As Introduced: a negative impact of ($16,800,000) through the biennium ending August 31, 2027. General Revenue-Related Funds, Five- Year Impact: Fiscal Year Probable Net Positive/(Negative) Impact toGeneral Revenue Related Funds2026($7,870,000)2027($8,930,000)2028($9,290,000)2029($9,660,000)2030($10,050,000)All Funds, Five-Year Impact: Fiscal Year Probable Revenue (Loss) fromGeneral Revenue Fund1 Probable Revenue (Loss) fromCities Probable Revenue (Loss) fromTransit Authorities Probable Revenue (Loss) fromCounties & Special Districts2026($7,870,000)($1,440,000)($480,000)($360,000)2027($8,930,000)($1,630,000)($540,000)($400,000)2028($9,290,000)($1,700,000)($560,000)($420,000)2029($9,660,000)($1,770,000)($590,000)($440,000)2030($10,050,000)($1,840,000)($610,000)($450,000) Fiscal AnalysisThe bill would eliminate sales and use taxes on tangible personal property that is permanently affixed to, or attached as a component part of, an aircraft owned by certain persons.The bill would take effect September 1, 2025.
LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 89TH LEGISLATIVE REGULAR SESSION
April 7, 2025
TO: Honorable Joan Huffman, Chair, Senate Committee on Finance FROM: Jerry McGinty, Director, Legislative Budget Board IN RE: SB1030 by Nichols (Relating to the exemption from sales and use taxes for certain aircraft components and other property required for normal aircraft operations.), As Introduced
TO: Honorable Joan Huffman, Chair, Senate Committee on Finance
FROM: Jerry McGinty, Director, Legislative Budget Board
IN RE: SB1030 by Nichols (Relating to the exemption from sales and use taxes for certain aircraft components and other property required for normal aircraft operations.), 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
SB1030 by Nichols (Relating to the exemption from sales and use taxes for certain aircraft components and other property required for normal aircraft operations.), As Introduced
SB1030 by Nichols (Relating to the exemption from sales and use taxes for certain aircraft components and other property required for normal aircraft operations.), As Introduced
Estimated Two-year Net Impact to General Revenue Related Funds for SB1030, As Introduced: a negative impact of ($16,800,000) through the biennium ending August 31, 2027.
Estimated Two-year Net Impact to General Revenue Related Funds for SB1030, As Introduced: a negative impact of ($16,800,000) through the biennium ending August 31, 2027.
General Revenue-Related Funds, Five- Year Impact:
2026 ($7,870,000)
2027 ($8,930,000)
2028 ($9,290,000)
2029 ($9,660,000)
2030 ($10,050,000)
All Funds, Five-Year Impact:
2026 ($7,870,000) ($1,440,000) ($480,000) ($360,000)
2027 ($8,930,000) ($1,630,000) ($540,000) ($400,000)
2028 ($9,290,000) ($1,700,000) ($560,000) ($420,000)
2029 ($9,660,000) ($1,770,000) ($590,000) ($440,000)
2030 ($10,050,000) ($1,840,000) ($610,000) ($450,000)
Fiscal Analysis
The bill would eliminate sales and use taxes on tangible personal property that is permanently affixed to, or attached as a component part of, an aircraft owned by certain persons.The bill would take effect September 1, 2025.
Methodology
According to the Comptroller of Public Accounts, under current law, tangible personal property permanently attached to an aircraft, or that becomes a component part of an aircraft, is exempt from sales tax if the aircraft is either owned by a licensed carrier of persons or property or an FCC recognized flight school. This bill would delete the ownership requirements and extend the exemption to all aircraft, regardless of ownership. Comptroller records and data regarding the amount of sales tax remitted by maintenance repair and overhaul entities that perform these services were used to determine the fiscal impact of the bill.
Local Government Impact
There would be a corresponding loss of sales and use tax revenue from local taxing jurisdictions displayed in the above tables.
Source Agencies: b > td > 304 Comptroller of Public Accounts
304 Comptroller of Public Accounts
LBB Staff: b > td > JMc, KK, SD
JMc, KK, SD