Over the interim, the House Committee on Ways and Means held multiple hearings on the interim charge to examine the state’s major tax exemptions to determine how the current costs and benefits compare with the original legislative objectives and to make recommendations for adjustments as needed. The interim report published by the committee reviewed the testimony they heard in committee and the amounts provided in the 2009 Comptrollers Sales Tax Exemptions & Tax Incidence Report.
Texas Comptroller Susan Combs has now updated those estimated in the February 2011 edition. For 2011, Combs noted, aggregate exemptions for the above revenue sources will total an estimated $38.2 billion. Of this amount, the exemption related to state taxes will account for $32.2 billion, and school property tax exemptions will account for the remaining $6.0 billion. Below is a table that includes the exemptions reviewed during the interim, the corresponding amounts of those exemptions and the amount reported in the 2011 Sales Tax Exemption and Tax incidence report: http://www.window.state.tx.us/taxinfo/incidence/
|
Sales Tax |
2011 Value of Exclusion/in House Ways and Means Interim Report |
2011 Value of Exclusion in 2011 Comptroller Report |
|
Water – Bottled Water, Section 151.315, Tax Code |
$261.4 million |
$213.1 million |
|
Basic Fee for Internet Access Service, Section 151.325, Tax Code |
$94.1 million |
$137.3 million |
|
Information Services and Data Processing Services, Section 151.351, Tax Code |
$40.5 million |
$27 million |
|
Aircraft, Section 151.328, Tax Code |
$18.1 million |
$36.9 million |
|
Certain Ships and Ship Equipment, Section 151.329, Tax Code |
$36.0 million |
$44.5 million |
|
Coin-operated Services, Section 151.335, Tax Code |
$64.7 million |
$34.1 million |
|
Certain Coins and Precious Metals, Section 151.336, Tax Code |
not provided |
$0.8 million |
|
Cooperative Research and Development Ventures, Section 151.348, Tax Code |
not provided |
not provided |
|
Services by Employees of Property Management Companies, Section 151.354, Tax Code |
not provided |
amount is negligible |
|
Sales Tax Exclusions: Services |
2011 Value of Exclusion/in House Ways and Means Interim Report |
2011 Value of Exclusion in 2011 Comptroller Report |
|
Elective medical services physician services/dental services |
$903.5 million/$312.1 million |
$879.2 million/$335.5 million |
|
Non-financial legal services |
$472.5 million |
$422.9 million |
|
Accounting, auditing, and financial legal services |
$226.6 million |
$237.3 million |
|
Architectural and engineering services |
$390.3 million |
$372.3 million |
|
Management consulting and public relations |
$200.7 million |
$188 million |
|
Research and development laboratory services |
$142.1 million |
$162.2 million |
|
Economic and sociological research |
$23.0 million |
$25.7 million |
|
Non-clinical testing labs |
$55.2 million |
$36.7 million |
|
Billboard advertising |
$28.5 million |
$22.8 million |
|
Employment agency services and /Temporary labor supply |
$36.2 / $54.4 million |
$43.8/$302.5 million |
|
Financial services brokerage / Other financial |
$175.5 / $71.4 million |
$160.9/$107.2 million |
|
Real estate brokerage and agency |
$236.7 million |
$225.1 million |
|
Other transportation (excluding scheduled passenger) intrastate transport: taxi, limousine, |
$27.7 million |
$19.4 million |
|
Small animal veterinary services |
$51.5 million |
$51.1 million |
|
Automotive maintenance and repair |
$303.9 million |
$451.8 million |
|
Car Washes |
$36.9 million |
$27.1 million |
|
Travel arrangements |
$15.5 million |
$5.2 million |
|
Private vocational education |
$56.1 million |
$42.8 million |
|
Other educational services |
$40.5 million |
$33.1 million |
|
Interior design |
$9.1 million |
$12.8 million |
|
Personal services: tattooing, tanning, and body piercing |
no figures available |
n/a |
|
Water conditioning and water softening |
no figures available |
n/a |