LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE
75th Regular Session
March 13, 1997
TO: Honorable Kenneth Armbrister, Chair IN RE: Senate Bill No. 856
Committee on State Affairs By: Shapleigh
Senate
Austin, Texas
FROM: John Keel, Director
In response to your request for a Fiscal Note on SB856 ( Relating
to the authority of certain municipalities to impose a local
tax on the gross rental receipts from the rental of a motor
vehicle.) this office has detemined the following:
Biennial Net Impact to General Revenue Funds by SB856-As Introduced
Implementing the provisions of the bill would result in a net
negative impact of ($490,389) to General Revenue Related Funds
through the biennium ending August 31, 1999.
The bill would make no appropriation but could provide the legal
basis for an appropriation of funds to implement the provisions
of the bill.
Fiscal Analysis
The bill would amend Subtitle C, Title 3 of the Tax Code to
allow certain municipalities to impose a tax not to exceed 5
percent on vehicle rentals and to use the tax revenues only
to pay costs associated with a postseason intercollegiate football
bowl game. Under this bill, the only municipalities eligible
to impose the tax would be those with a population of more than
500,000 situated in a county bordering the Republic of Mexico
in which a postseason intercollegiate football bowl game is
held annually. The municipality would not be able to impose
the tax unless it was first approved by a majority of the qualified
voters of the municipality voting at an election held for that
purpose.
The bill would require the Comptroller to administer,
collect, and enforce the municipal vehicle rental tax, to adopt
rules and prescribe forms, and to collect the municipal rental
tax along with the state vehicle rental tax. The Comptroller
would be required to prepare quarterly reports to a municipality
that had adopted the tax.
The bill would require the Comptroller
to deposit in the State Treasury the municipal motor vehicle
rental taxes collected. The Comptroller would be required to
keep the deposits in trust in a separate Suspense Account of
the municipality. Interest earned on those deposits would be
credited to the General Revenue Fund 0001. The Comptroller
would be required to retain 2 percent of all municipal motor
vehicle rental taxes collected for deposit into the General
Revenue Fund 0001 after the payment of certain expenses.
Methodolgy
The administrative cost estimate reflects the funds for staff
and equipment that would be needed by the Comptroller's office
to handle the anticipated increased workload for allocation
activities. The cost estimate for fiscal 1998 also includes
funds to hire contract programmers that would be required to
make enhancements to the allocation, enterprise, and tax processing
automated systems. No significant fiscal impact to the state
is anticipated, other than the costs incurred by the comptroller
to administer the bill's provisions.
The probable fiscal implications of implementing the provisions
of the bill during each of the first five years following passage
is estimated as follows:
Five Year Impact:
Fiscal Year Probable Change in Number
Savings/(Cost) of State
to General Employees from
Revenue Fund FY 1997
0001
1998 ($456,908) 1.0
1998 (33,481) 1.0
2000 (33,481) 1.0
2001 (33,481) 1.0
2002 (33,481) 1.0
Net Impact on General Revenue Related Funds:
The probable fiscal implication to General Revenue related funds
during each of the first five years is estimated as follows:
Fiscal Year Probable Net Postive/(Negative)
General Revenue Related Funds
Funds
1998 ($456,908)
1999 (33,481)
2000 (33,481)
2001 (33,481)
2002 (33,481)
Similar annual fiscal implications would continue as long as
the provisions of the bill are in effect.
Because the bill would not have statewide impact on units of
local government of the same type or class, no comment from
this office is required by the rules of the Senate as to its
probable fiscal implication on units of local government.
Source: Agencies: 302 Office of the Attorney General
304 Comptroller of Public Accounts
LBB Staff: JK ,JD ,SM