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