LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE 75th Regular Session March 19, 1997 TO: Honorable Eddie Lucio, Jr., Chair IN RE: Senate Bill No. 679 Committee on Intergovernmental Relations By: Lindsay Senate Austin, Texas FROM: John Keel, Director In response to your request for a Fiscal Note on SB679 ( Relating to the requirement that a portion of the sales and use tax revenue collected by certain metropolitan rapid transit authorities be used only for county and municipal road and bridge purposes.) this office has detemined the following: Biennial Net Impact to General Revenue Funds by SB679-As Introduced No fiscal implication to the State is anticipated. FISCAL ANALYSIS This bill would require the Metropolitan Transit Authority of Harris County to distribute 25 percent of the total revenue from sales and use tax collected during a calendar year to each municipality or county in the authority. The authority already distributes these revenues (approximately $68.8 million of $268.3 million collected) to the 15 member municipalities and Harris County according to the authority's own formula. METHODOLOGY Data for the total amount of tax revenue collected in each member jurisdiction and the amount of interlocal payments made during fiscal year 1996 was provided by the Metropolitan Transit Authority of Harris County. The fiscal impact of this bill on each member local government is assumed to be the difference between the amount the bill would require as determined by the portion of tax collected in fiscal year 1996 and total interlocal payments to each entity in 1996. This analysis assumes that the authority would distribute 25.6 percent of revenues collected to member local governments, since that is the percentage the authority allocated in fiscal year 1996. FISCAL IMPACT It is estimated that this bill would increase (decrease) annual revenues to member local governments in the following amounts: Bellaire ($4,000) Bunker Hill ($124,000) El Lago ($109,000) Harris County ($13.3 million) Hedwig Village $75,000 Hillshire Village ($88,000) Houston $13.4 million Humble $895,000 Hunters Creek Village ($103,000) Katy ($1,000) Missouri City ($196,000) Piney Point Village ($124,000) Southside Village ($83,000) Spring Valley ($84,000) Taylor Lake Village ($120,000) West University Place ($111,000) Similar annual fiscal implications would continue as long as the provisions of the bill are in effect. Source: Agencies: Metropolitan Transit Authority of Harris County LBB Staff: JK ,TL