LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE 74th Regular Session April 19, 1995 TO: Honorable Rodney Ellis, Chair IN RE: Senate BillNo. 1388 Committee on Intergovernmental By: Rosson Relations Senate Austin, Texas FROM: John Keel, Director In response to your request for a Fiscal Note on Senate Bill No. 1388 (relating to the creation of a county mass transit authority) this office has determined the following: The bill would add Article 1118z-1, V.T.C.S., relating to the creation of a county mass transit authority. The bill would only apply to a county containing a municipality with a population of 500,000 or greater that has created a city transit department under Article 1118z, V.T.C.S. The bill would allow a county to create a mass transit authority if the combined rate of the sales and use tax charged by the authority and all political subdivisions having territory in the county would not exceed two percent. The initial tax rate must be the same rate collected by the city transit department created by the principal municipality. The creation of an authority and the initial tax rate would be subject to approval by the voters in the county. The initial tax rate could be changed subject to voter approval. The bill would authorize an authority to issue tax exempt revenue bonds for the acquisition, construction, repair, equipping, improvement, or extension of its transit system. Bonds payable solely from revenues may be issued by resolution of the board. Bonds payable from tax revenue would be subject to voter approval. It appears that this bill would currently only apply to El Paso county. The fiscal implications cannot be determined as it is not known if an authority would be created pursuant to this bill or if the voters of El Paso county would approve a new, county-wide mass transit authority. If, however, an authority were created (and approved by the voters), and provided the new authority would have a sales tax with a rate of one-half of one percent, then the new tax would generate approximately the same amount of revenue as the existing county sales and use tax. El Paso county was rebated $20.1 million in county sales and use tax in calendar year 1994. By comparison, the El Paso CTD (mass transit authority) was rebated about $19.5 million in the same year. No significant fiscal implication to the State is anticipated. The fiscal implication to units of local government cannot be determined. Source: Comptroller of Public Accounts, Natural Resources Conservation Commission, Department of Transportation LBB Staff: JK, SM, RR