Bill Caption

Relating to the exclusion of certain flow-through funds by taxable entities engaged in the business of transporting aggregates in determining total revenue for purposes of the franchise tax.

Fiscal Notes

Estimated Two-year Net Impact to General Revenue Related Funds for HB1733, As Introduced: an impact of $0 through the biennium ending August 31, 2015. Additionally, the bill will have a direct impact of a revenue loss to the Property Tax Relief Fund of ($2,506,000) for the 2014-15 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.

Bill Analysis

Summary: HB 1733 would allow aggregate transporting businesses to exclude from their revenues, for purposes of calculating their franchise tax liabilities, sub-contracting payments made to non-employee agents that perform delivery services on their behalf. Aggregates include construction material such as limestone, granite, stone and any other commonly recognized construction material extracted or removed from the earth.

Analysis: HB 1733 limits government and promotes the property rights of aggregate transporting businesses by reducing their franchise tax liability.