| TO: | Honorable Steve Ogden, Chair, Senate Committee on Finance |
| FROM: | John S. O'Brien, Director, Legislative Budget Board |
| IN RE: | HB1459 by Guillen (Relating to the application of the sales and use tax to certain telecommunications services provided through the use of a pay phone.), As Engrossed |
| Fiscal Year | Probable Net Positive/(Negative) Impact to General Revenue Related Funds |
|---|---|
| 2008 | ($1,240,000) |
| 2009 | ($1,287,000) |
| 2010 | ($1,224,000) |
| 2011 | ($1,164,000) |
| 2012 | ($1,107,000) |
| Fiscal Year | Probable Revenue Gain/(Loss) from GENERAL REVENUE FUND 1 |
Probable Revenue Gain/(Loss) from City Sales Tax Revenue |
Probable Revenue Gain/(Loss) from MTA Sales Tax Revenue |
Probable Revenue Gain/(Loss) from County/SPD Sales Tax Revenue |
|---|---|---|---|---|
| 2008 | ($1,240,000) | ($191,000) | ($24,000) | ($14,000) |
| 2009 | ($1,287,000) | ($218,000) | ($28,000) | ($16,000) |
| 2010 | ($1,224,000) | ($207,000) | ($27,000) | ($16,000) |
| 2011 | ($1,164,000) | ($197,000) | ($25,000) | ($15,000) |
| 2012 | ($1,107,000) | ($188,000) | ($24,000) | ($14,000) |
The bill would amend Chapter 151 of the Tax Code to exclude a pay telephone coin sent-paid telephone call from the definition of telecommunications services. A sales tax exemption would be created for these types of calls under the provisions of the bill.
The bill would take effect September 1, 2007.
The Comptroller of Public Accounts gathered data on the value of pay telephone calls revenue from the Federal Communications Commission. For the purpose of the estimate, the revenues were adjusted for calls paid for by coin in Texas and for sales taxes that would be collected on phone service provided to independent pay phone operators, multiplied by the state sales tax rate, and adjusted for the effective date.
The Comptroller proportionally estimated the fiscal impacts on units of local government.
| Source Agencies: | 304 Comptroller of Public Accounts
|
| LBB Staff: | JOB, CT, SD, EB
|