How Much $$$ Will Texas Schools Collect with Rick Koster's Plan to Eliminate M&O Property Tax?

2005 M&O Property tax collection: $16.7B

Business Activity Tax Collection

Texas Gross State Product (Billions)$

Fixed Investments adjustments %

Business Activity Tax Rate %

Business Activity Tax collection (Billions) $

Collection from Petroleum Sales Tax (8%)

Daily consumpion of Petroleum products (Millions of gallons)

Average fuel price $

Sales Tax %

Annual Collection from petroleum fuel sales tax (Billions) $

Collection from Electric Sales Tax (8%)

Texas Yearly Electric consumption (Megawatt hours)

Average price of a Kilowatt hour (cents)

Annual Collection from Electric consumption sales tax (Billions) $




Annual Collection = Business Tax + Petroleum fuel sales tax + Electric sales tax (Billions) $

Supporting Data for Rick Koster School Finance Plan

Source: Texas Comptroller:

2006 Estimated Texas Gross State Product: $928B http://www.cpa.state.tx.us/ecodata/fcst04fall/

Source: Business activity tax for school funding: David Hartman of the Lone Star foundation

Go to http://www.lonestarfoundation.org/education.asp

Source: Department of Energy petroleum fuel and electricity data for Texas:

Estimated 2006 Petroleum Energy consumption: 106M Gallons a day http://tonto.eia.doe.gov/oog/info/state/tx.html

2004 Electric Consumption: 390,299,132 Megawatts Hours http://www.eia.doe.gov/cneaf/electricity/st_profiles/texas.pdf