Proceeds from the Sale of Surplus Property
Issued: Oct. 31, 2005
Updated: Aug. 16, 2019 – View Changes
If you have questions, please contact your agency’s appropriation control officer.
All proceeds from sales of surplus property must be deposited to general revenue (GR) in appropriation 99908. Proceeds include sale of surplus property, equipment and commodities.
This applies to:
- Sales made by the Texas Facilities Commission (TFC)
- Sales that TFC authorizes other agencies to make per Texas Government Code, Section 2175.181
This does not apply to surplus property purchased from trust funds, bond funds, funds held outside the State Treasury and, in some cases, federal funds. Proceeds from surplus property do not apply when an agency “purchases” an item (listed by TFC as available) from another agency. This activity is considered a transfer of state assets.
An agency may re-appropriate 25 percent of the receipts from the sale of surplus property for expenditure based on on House Bill 1, 86th Legislature, Regular Session, Article IX, Section 8.03.
TFC deposits 100 percent of proceeds directly into appropriation 99908.
Each agency is responsible for:
- Moving out of appropriation 99908 any proceeds that do not apply to the surplus property rules/policy
- After TFC deposits proceeds, moving up to 25 percent out of appropriation 99908 to one or more like appropriations for expenditures out of GR (Fund 0001)
HB 7, 78th Legislature, Regular Session, originally established this procedure that was applied retroactively to fiscal 2003 sales.
HB 1, Article IX, Section 8.03, 86th Legislature, Regular Session, states:
- Twenty-five percent of the receipts to a state agency specified in this Act received from the sale of surplus property, equipment, commodities or salvage (including recycled products) pursuant to the provisions of Chapter 2175, Government Code, are appropriated to the state agency for expenditure during the fiscal year in which the receipts are received. Receipts from such surplus equipment, commodities or salvage (including recycled products) sales shall be expended from the appropriation item from which like property, equipment or commodities would be purchased.
|08/16/2019||Updated per acts of the 86th Legislature, Regular Session|
|09/01/2017||Updated per acts of the 85th Legislature, Regular Session|
|08/28/2015||Updated per acts of the 84th Legislature, Regular Session|