LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE
75th Regular Session
April 8, 1997
TO: Honorable Kenneth Armbrister, Chair IN RE: Senate Bill No. 1170
Committee on State Affairs By: Lindsay
Senate
Austin, Texas
FROM: John Keel, Director
In response to your request for a Fiscal Note on SB1170 ( Relating
to the initial inspection period for certain vehicles.) this
office has detemined the following:
Biennial Net Impact to General Revenue Funds by SB1170-As Introduced
Implementing the provisions of the bill would result in a net
positive impact of $16,500,000 to General Revenue Related Funds
through the biennium ending August 31, 1999.
Fiscal Analysis
The bill would amend the Transportation Code to change the initial
inspection period for a new passenger car or light truck from
two years to three years and raise the applicable inspection
fee to $25.25 from the present $19.75.
Methodolgy
The initial inspection period for a qualifying new vehicle would
be 3 years (presently two years), and the applicable fee would
increase to $25.25 (presently $19.75). The Texas Department
of Transportation (department) would require an inspection station
to make an advanced payment of $20.25 (presently $14.75) to
the department for each certificate issued.
The Comptroller
has indicated that increasing the initial inspection period
to three years and raising the applicable fee by $5.50 would
increase revenues to the General Revenue Fund 0001 in fiscal
1998 and 1999, but not thereafter. Assuming new passenger car
and light truck vehicle registrations remain consistent with
the fiscal 1996 estimate of 1.5 million vehicles, the increase
to the state's general revenue would be approximately $8,250,000
in each fiscal 1998 and 1999. This amount was computed by multiplying
the new fee increase of $5.50 times the approximate number
of annual new vehicle registrations of 1.5 million.
The
Comptroller estimates that there would be no fiscal effects
for fiscal 2000 and beyond because amounts collected for new
registrations and re-registrations under the bill would equal
the current amount collected for new registrations plus re-registrations
of vehicles. This is because under current law, re-registrations
enter the revenue stream in the third year of registration and
under the bill as introduced, re-registrations would enter the
revenue stream in the fourth year of registration.
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 Revenue
Gain/(Loss) from
General Revenue
Fund
0001
1998 $8,250,000
1998 8,250,000
2000 0
2001 0
2002 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 $8,250,000
1999 8,250,000
2000 0
2001 0
2002 0
No fiscal implication to units of local government is anticipated.
Source: Agencies: 601 Department of Transportation
304 Comptroller of Public Accounts
LBB Staff: JK ,JD ,ML