HBA-JRA H.B. 1519 76(R) BILL ANALYSIS Office of House Bill AnalysisH.B. 1519 By: Junell Ways & Means 4/15/1999 Introduced BACKGROUND AND PURPOSE Prior to 1993, counties figured and collected motor vehicle registration money separately from sales tax money. At that time, counties collected the sales tax and retained five percent of the funds at the end of the month. In 1993, the state changed the reimbursement method from sales tax money. Currently, counties are required to send in all of the sales tax money and retain the equivalent of the five percent sales tax from registration money. In smaller counties, the county does not collect enough registration money to retain the sales tax commission from the registration funds. As a result, these smaller counties must wait for a full calender year to receive the five percent reimbursement from the state. The county does not benefit from the immediate use of the funds. Additionally, there is a percentage of these counties that actually lose part of their registration moneys due to the manner in which the reimbursement is calculated. H.B. 1519 requires counties with populations under 10,000 to send 95 percent of the money collected from motor vehicle sales, rental, and use tax and penalties to the comptroller and retain five percent as fees of office or to be paid into the officers' salary fund of the county, thereby allowing such counties to have full use of their fees while providing for full reimbursement for services rendered to the State of Texas. RULEMAKING AUTHORITY It is the opinion of the Office of House Bill Analysis that this bill does not expressly delegate any additional rulemaking authority to a state officer, department, agency, or institution. SECTION BY SECTION ANALYSIS SECTION 1. Amends Section 152.121, Tax Code, by amending the title and adding Subsection (d), as follows: Sec. 152.121. New title: TAX SENT TO COMPTROLLER: COUNTIES WITH A POPULATION OF MORE THAN 10,000. (d) Provides that Subsection (a) and (c), relating to the disposition of revenue from the motor vehicle sales, rental, and use taxes and penalties, apply only to a county with a population of more than 10,000. SECTION 2. Amends Subchapter G, Chapter 152, Tax Code, by adding Section 152.1211, as follows: Sec. 152.1211. TAX SENT TO COMPTROLLER: COUNTIES WITH A POPULATION OF 10,000 OR LESS. (a) Provides that this section applies only to a county with a population of 10,000 or less. (b) Requires the county tax assessor-collector to send 95 percent of the money collected from tax and penalties imposed by this chapter (Taxes on Sale, Rental, and Use of Motor Vehicles) to the comptroller and retain five percent as fees of office or to be paid into the officers' salary fund of the county as provided by general law. (c) Requires the state portion of the taxes collected by the county tax assessor-collector under this chapter to be sent to the comptroller on the 10th day of each month if the office of the county tax assessor-collector collected less than $2 million of the taxes and penalties imposed by this chapter during the last preceding state fiscal year, once each week if the county tax assessor-collector collected between $2 million and $10 million of the taxes and penalties imposed by this chapter during the last preceding state fiscal year, or daily (as collected) if the office of the county tax assessor-collector collected more than $10 million of the taxes and penalties imposed during the last preceding state fiscal year. SECTION 3. Amends Section 502.102(b), Transportation Code, to make conforming changes. SECTION 4. Amends Section 502.108(e), Transportation Code, to make conforming changes. SECTION 5. Effective date: January 1, 2000. SECTION 6. Emergency clause.