Comptroller of Public Accounts Dynamic Fiscal Note Estimate
Limited Sales and Use Tax Exemption for Over the Counter Drugs
SB275, 77th Legislature
January 8, 2007
I. Revenue Impact Analysis, 2008-2012
| Fiscal Year | Static Revenue Impact Gain/(Loss) to the General Revenue Related Funds | Dynamic Revenue Impact Dynamic Feedback Revenue Effect | Dynamic Revenue Impact Net Gain/(Loss) to the General Revenue Related Funds |
|---|---|---|---|
| 2008 | (192,700,000) | (3,640,000) | (196,340,000) |
| 2009 | (199,800,000) | (5,432,000) | (205,232,000) |
| 2010 | (207,000,000) | (5,999,000) | (212,999,000) |
| 2011 | (214,600,000) | (7,174,000) | (221,774,000) |
| 2012 | (222,600,000) | (8,587,000) | (231,187,000) |
II. Economic Impact Analysis, 2008-2012
Dynamic Economic Impacts
| Fiscal Year | Increase/(Decrease) in Texas Personal Income | Increase/(Decrease) in Texas Investment | Increase/(Decrease) in Texas Employment |
|---|---|---|---|
| 2008 | (157,700,000) | (46,212,000) | (3,500) |
| 2009 | (188,300,000) | (70,096,000) | (3,700) |
| 2010 | (214,100,000) | (83,131,000) | (3,900) |
| 2011 | (235,600,000) | (89,201,000) | (4,000) |
| 2012 | (254,800,000) | (91,440,000) | (4,000) |
Note: The values in Section II relate to changes in macroeconomic variables relative to the Comptroller's baseline economic forecast.
III. Dynamic Methodology
A Texas-specific economic impact model was employed in calculating the economic impacts. The model distributes the savings that would otherwise have been paid by businesses and consumers among the state's economic sectors. The revenue feedback calculation was based on the historical relationship between state tax revenues and associated economic factors.