LEGISLATIVE BUDGET BOARD
Austin, Texas
 
FISCAL NOTE, 84TH LEGISLATIVE REGULAR SESSION
 
March 2, 2015

TO:
Honorable Jane Nelson, Chair, Senate Committee on Finance
 
FROM:
Ursula Parks, Director, Legislative Budget Board
 
IN RE:
SB8 by Schwertner (Relating to the total revenue exemption for the franchise tax.), As Introduced



Estimated Two-year Net Impact to General Revenue Related Funds for SB8, As Introduced: an impact of $0 through the biennium ending August 31, 2017.

Additionally, the bill will have a direct impact of a revenue loss to the Property Tax Relief Fund of ($759,826,000) for the 2016-17 biennium.  Any loss to the Property Tax Relief Fund must be made up with an equal amount of General Revenue to fund the Foundation School Program.



Fiscal Year Probable Net Positive/(Negative) Impact to General Revenue Related Funds
2016 $0
2017 $0
2018 $0
2019 $0
2020 $0




Fiscal Year Probable Revenue (Loss) from
Property Tax Relief Fund
304
2016 ($376,514,000)
2017 ($383,312,000)
2018 ($381,807,000)
2019 ($388,913,000)
2020 ($394,392,000)

Fiscal Analysis

This bill would amend Chapter 171 of the Tax Code, regarding the franchise tax, by increasing the amount of total revenue below which a taxable entity would owe no tax.  The current level is $1 million, and this bill would raise the amount to $4 million.

Methodology

The estimated fiscal impact of the bill is based on franchise tax liability of taxable entities with total revenue between $1 million and $4 million.

Local Government Impact

No fiscal implication to units of local government is anticipated.


Source Agencies:
304 Comptroller of Public Accounts
LBB Staff:
UP, KK, SD