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<br />LEGISLATIVE BUDGET BOARD
<br />
<br />Austin, Texas
<br />
<br />FISCAL NOTE, 80TH LEGISLATIVE REGULAR SESSION
<br />
<br />May 21, 2007
<br />
<br />TO: Honorable Tom Craddick, Speaker of the House, House of Representatives
<br />
<br />FROM: John S. O'Brien, Director, Legislative Budget Board
<br />
<br />IN RE: HB621 by Chavez (Relating to the exemption from ad valorem taxation of tangible personal
<br />property held temporarily at a location in this state for assembling, storing, manufacturing,
<br />processing, or fabricating purposes.), As Passed 2nd House
<br />
<br />Estimated Two-year Nct Impact to General Revenuc Relatcd Funds for HB621. As Passed 2nd House: a
<br />negative impact of ($25215.000) through the biennium ending August 31. 2009.
<br />
<br />The bill would make no appropriation but could provide the legal basis for an appropriation of funds to
<br />implement the provisions of the bill.
<br />
<br />General Revenue-Related Funds, Five- Year Impact:
<br />
<br />Fiscal Year
<br />
<br />Probable Net Positive/(Negat;ve)
<br />Impact to General Revenue Related
<br />Funds
<br />
<br />200X
<br />2009
<br />2010
<br />2011
<br />2012
<br />
<br />$0
<br />($25.215,000)
<br />($31,184,000)
<br />($32.429,000)
<br />($33,723,000)
<br />
<br />All Funds, Five-Year Impact:
<br />
<br />Fiscal Year
<br />
<br />Probable Savings/
<br />(Cost) from
<br />FOUNDA TlON
<br />SCHOOL FUND
<br />193
<br />
<br />Probable Revenue
<br />Gain/(Loss) from
<br />Cities
<br />
<br />Probable Revenue
<br />Gain/(Loss) from
<br />School Districts - Initial
<br />Impact
<br />
<br />Probable Revenue
<br />Gain/(Loss) from
<br />Coullties
<br />
<br />200X
<br />2009
<br />2010
<br />2011
<br />2012
<br />
<br />$0
<br />($25,215,000)
<br />($31,184,000)
<br />($32,429,000)
<br />($33,723,000)
<br />
<br />$0
<br />($30,221,000)
<br />($31,430,000)
<br />($32,687,000)
<br />($33,994,000)
<br />
<br />$0
<br />($9,419,000)
<br />($9,796,000)
<br />($10,188,000)
<br />($10,596,000)
<br />
<br />$0
<br />($6,552,000)
<br />($6,814,000)
<br />($7,087,000)
<br />($7,370,000)
<br />
<br />Fiscal Analysis
<br />
<br />The bill would add a new section to Chapter 11 of the Tax Code to provide a new exemption from ad
<br />valorem taxation for "goods in transit."
<br />
<br />To qualify for the exemption, personal property would have to be acquired in Texas or imported into
<br />Texas and stored at a Texas location in which the owner of the goods did not have a direct or indirect
<br />ownership interest.
<br />
<br />Oil and gas and their immediate derivatives, aircraft, and dealer's special inventories would not qualify
<br />
<br />1 of3
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