84(R) - 2015
Relating to the repeal of the inheritance tax and the tax on combative sports events.
A fiscal note dated March 2, 2015 anticipates a two-year net negative impact to general revenue related funds of $1,202,000 through the biennium ending August 31, 2017. Most of this impact would come from the repeal of the tax on combative sports events.
Nevertheless, the fiscal note also indicates that the Comptroller's office estimates the revenue loss from the repeal of the inheritance and combative sports admissions taxes could be offset. Repealing the inheritance tax, as well as taxes on liquefied gas, controlled substances, oil regulation, sulphur, and fireworks, would allow the Comptroller to redeploy resources to audit and enforcement activities for other sources of revenue, which could in turn generate the revenue sufficient to offset revenue lost from Senate Bill 752.
Senate Bill 752 would repeal the inheritance tax and the tax on combative sports events.
The second chamber sponsor is Representative Jim Murphy.
Vote Recommendation Notes
A committee substitute has been introduced by the House Ways & Means committee since we reported on House Bill 752.
Unfortunately, CSHB 752 would only repeal the inheritance tax, but not the tax on combative sports events. The committee substitute weakens the bill, but still repeals the inheritance tax. We continue to support it.
First chamber recommendation below:
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a tax is not bringing significant revenues that offset the costs to the taxpayer of collecting it, the tax should be repealed.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 these taxes could be better used.
A repeal across the board of both taxes would not only mean that taxpayers money would be used more efficiently, it would also bring tax relief to Texan businesses and individuals. A repeal of the inheritance tax would be a particular show of support for property rights. We hence support Senate Bill 752.