SRC-HRD S.B. 1572 75(R)   BILL ANALYSIS


Senate Research Center   S.B. 1572
By: Madla
Finance
4-11-97
As Filed


DIGEST 

Currently, the Texas Department of Transportation utilizes funds from
nonconstitutionally dedicated state highway funds for aviation facility
development and improvements.  The amount appropriated by each legislature
varies.  The aviation industry pays sales and use tax, and franchise tax
on the distribution, sale, manufacture, storage, and repair of aircraft,
and the sale, manufacture, or repair of aviation services, parts and
equipment.  This revenue is deposited in the general revenue fund.   

Currently, there are concerns that the general aviation airports in the
Texas Airport System are in poor condition due to long-term funding
deficiencies at the state, local, and federal levels.  Many runways,
taxiways, and aprons are reportedly in various stages of disrepair and
thereby jeopardizing the needs of the sophisticated business aircraft
today.  Some claim that as a result of these conditions, Texas communities
are at a disadvantage, when compared to communities in other states, in
attracting business and industry.  This bill would allow the utilization
of tax revenues already contributed by the aviation industry for airport
development. 

PURPOSE

As proposed, S.B. 1572 requires the amount of the proceeds from the
collection of the taxes on the sale of aviation services, aircraft, and
aviation parts to be deposited to the credit of the public aviation
account to be used only for the benefit of publicly owned airports.   

RULEMAKING AUTHORITY

This bill does not grant any additional rulemaking authority to a state
officer, institution, or agency. 

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Section 151.801, Tax Code, by amending Subsections (a)
and (e) and adding Subsection (f), to require the amount of the proceeds
from the collection of the taxes imposed by this chapter on the sale of
aviation services, aircraft, and aviation parts to be deposited to the
credit of the public aviation account created by Section 21.007,
Transportation Code.  Requires the comptroller to certify the amount to be
deposited to the account according to available statistical data
indicating the estimated average or actual consumption or sales of
aviation services, aircraft, and aviation parts.  Authorizes the
comptroller, if satisfactory data are not available, to require taxpayers
who make taxable sales or use of those taxable items to report to the
comptroller as necessary to make the allocation required by this
subsection.  Defines "aviation part."  Makes conforming changes. 

SECTION 2. Amends Section 171.401, Tax Code, as follows:

Sec. 171.401.  New heading: DEPOSIT OF REVENUE. Requires, except as
provided by Subsection (b), the revenue from the tax imposed by this
chapter on corporation to be deposited to the credit of the general
revenue fund.  Requires revenue from the tax imposed by this chapter to be
deposited to the credit of the public aviation account created by Section
21.007, Transportation Code, if the revenue is collected from taxes
imposed on persons engaged in certain business activities. 

SECTION 3. Amends Chapter 21A, Transportation Code, by adding Section
21.007, as follows: 
 
Sec. 21.007.  PUBLIC AVIATION ACCOUNT.  Provides that a public aviation
account is created as a special account in the state highway fund.
Authorizes money from the account to be appropriated only for the benefit
of publicly owned airports.  Provides that Section 403.095, Government
Code, does not apply to the account. 

SECTION 4. Makes application of this Act prospective.

SECTION 5. Emergency clause.
  Effective date: upon passage.