84(R) - 2015
House Ways & Means
House Ways & Means
Relating to the repeal of certain alcoholic beverage taxes and the tax on controlled substances.
A fiscal note dated March 29, 2015 anticipates a negative two-year net impact to General Revenue Related Funds of $507,000 through the biennium ending August 31, 2017.
House Bill 1905 would amend Chapter 34 of the Alcoholic Beverage Code related to the airline beverage permit to exempt from taxes under this Chapter all alcoholic beverages on commercial passenger aircraft departing from an airport in Texas. It would also exempt the preparation and service of alcoholic beverages by the holder of an airline beverage permit from the tax under Chapter 34 and from the tax imposed under Chapter 151 of the Tax Code (Limited Sales, Excise and Use Tax).
House Bill 1905 would amend Chapter 48 of the Alcoholic Beverage Code related to the passenger train beverage permit to exempt from taxes under this Chapter all alcoholic beverages on commercial passenger trains departing from a depot in Texas. It would also exempt the preparation and service of alcoholic beverages by the holder of a passenger train beverage permit from the tax under Chapter 48 and from the tax imposed under Chapter 151 of the Tax Code (Limited Sales, Excise and Use Tax).
Finally, House Bill 1905 would repeal the controlled substances tax.
Vote Recommendation Notes
No amendments have been introduced on the House floor and no changes have been made to the bill in Senate committee. We continue to support it.
The second chamber sponsor is Senator Larry Taylor.
First chamber recommendation:
Collecting taxes, as well as tax auditing and enforcement activities, cost money to the Comptroller's office. When a tax is not bringing significant revenues that offset the costs to the taxpayer of collecting it, the tax should be repealed. The Comptroller's Office has indicated that the resources that are currently being used to collect the controlled substances tax, among other taxes, could be better used. According to the statement of purpose for House Bill 1905, taxes imposed on alcoholic beverages served on commercial passenger aircrafts and trains have high administrative costs for both the state and private business owners.
A repeal across the board of these taxes would not only mean that taxpayers money would be used more efficiently, it would also bring tax relief to Texan businesses and individuals. We hence support House Bill 1905.