LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE 74th Regular Session April 5, 1995 TO: Honorable John T. Montford, Chair IN RE: Senate BillNo. 1445 Committee on Finance By: Brown Senate Austin, Texas FROM: John Keel, Director In response to your request for a Fiscal Note on Senate Bill No. 1445 (Relating to transfer of title to a motor vehicle, the collection and administration of the motor vehicle sales tax, and certain disclosures that must be made to the purchaser of a motor vehicle.) this office has determined the following: This bill would provide that only a dealer who holds a license (permit) issued by the Texas Department of Transportation could acquire a vehicle for the exclusive purpose of resale. The bill would require that all licensed sellers of a vehicle remit the motor vehicle sales tax collected to the county tax assessor-collector. A licensed seller, other than an auctioneer, would add the tax to the sales price. Currently, either a seller or buyer remits motor vehicle sales tax when a vehicle is titled, subject to the buyer's proof of liability insurance. Since the seller would be required to remit the tax under this bill, there is a possibility that a seller would collect and not remit the tax, if the buyer cannot show proof of insurance, thus resulting in a possible revenue loss. The possible revenue loss resulting from this cannot be determined, since the number of instances in which this would occur cannot be determined. The fiscal implication to the State cannot be determined. No fiscal implication to units of local government is anticipated. Source: LBB Staff: JK, SM, DF