HB 2451

83(R) - 2013

Vote Recommendation

  • Neutral
  • Positive
  • Neutral
  • Positive
  • Neutral


Tracy King

Bill Caption

Relating to the allowance of cost of goods sold deductions in connection with agricultural aircraft operation.

Fiscal Notes

Estimated Two-year Net Impact to General Revenue Related Funds for HB2451, Committee Report 1st House, Substituted: 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 ($288,000) 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 2451 would allow businesses that provide agricultural aircraft operation services to exclude from its total revenue the cost of labor, equipment, fuel, and materials used in providing those services. This would decrease the Franchise Tax burden of businesses operating in this service industry, allowing them to keep more revenue and be more competitive.

Analysis: Although HB 2451 provides only a narrow tax exemption to this one industry, it does limit the amount of revenue the government can take from private business, which promotes limited government. This bill also allows agricultural aircraft operation service businesses to keep more revenue, which promotes their property rights and keeps more money in the private sector. Vote “yes,” on HB 2451.