LEGISLATIVE BUDGET BOARD
                          Austin, Texas

                           FISCAL NOTE
                       74th Regular Session

                          April 3, 1995



 TO:     Honorable Ken Armbrister, Chair        IN RE:  Senate BillNo. 1234
         Committee on State Affairs                     By: Armbrister
         Senate
         Austin, Texas






FROM: John Keel, Director

In response to your request for a Fiscal Note on Senate Bill No.
1234 (Relating to reimbursement of certain fees and taxes paid by
a motor vehicle rental company; providing a civil penalty.) this
office has determined the following:

This bill would permit a motor vehicle rental company to include
in each rental agreement a charge to reimburse the company for
title fees, registration fees, and personal property tax on the
rental fleet.  The company would retain the amounts collected. 
The charge would not apply  to the rental of a vehicle for use in
transporting commercial freight or a rental exempt from the gross
rental receipts tax.

The reimbursement charge would be subject to the gross rental
receipts tax.

The fiscal impact of the additional tax on the reimbursement
charge cannot be estimated since the registration fees, title
fees, and property taxes paid by rental companies cannot be
determined.


The fiscal implication to  the State or units of local government
cannot be determined.


Source:   Comptroller of Public Accounts
          LBB Staff: JK, SM, DF