LEGISLATIVE BUDGET BOARD
Austin, Texas
 
FISCAL NOTE, 87TH LEGISLATIVE REGULAR SESSION
 
March 16, 2021

TO:
Honorable Terry Canales, Chair, House Committee on Transportation
 
FROM:
Jerry McGinty, Director, Legislative Budget Board
 
IN RE:
HB156 by Ortega (Relating to the authorization by referendum of an optional county fee on vehicle registration in certain counties.), As Introduced

No significant fiscal implication to the State is anticipated.

The bill would amend the Transportation Code to allow certain counties to impose an additional fee of not more than $10 for a vehicle registered in the county. The bill would require the fee revenue collected to be sent to a regional mobility authority located in the county to fund long-term transportation projects.

The Department of Motor Vehicles (TxDMV) reports that any changes to county optional fees on vehicle registration that may result from implementation of the bill could be accommodated within the agency's existing registration systems.

Local Government Impact

The County Auditor of El Paso County does not anticipate a significant fiscal impact on the county. No significant fiscal impact to other counties is anticipated.

Based on the analysis provided by TxDMV, implementation of the optional fee in El Paso County could begin January 1, 2022, under the assumption that the commissioners court could pass a resolution, hold the required county election and receive approval of a majority of voters, and notify TxDMV by September 1, 2021, to begin charging the fee in calendar year 2022. Under these assumptions, TxDMV estimates a $10 optional fee per registered vehicle in the county with an estimated annual growth rate of 1.5 percent in the number of registered vehicles would generate $32.7 million in revenue over the five-year period from state fiscal year 2022 to 2026. Fee revenue would be sent to the local regional mobility authority to fund long-term transportation projects in El Paso County. 


Source Agencies:
601 Department of Transportation, 608 Department of Motor Vehicles
LBB Staff:
JMc, AAL, MB, TG, AF