LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 76th Regular Session
April 12, 1999
TO: Honorable Rene Oliveira, Chair, House Committee on Ways &
Means
FROM: John Keel, Director, Legislative Budget Board
IN RE: HB3159 by Oliveira (relating to the application of the
diesel fuel tax to diesel fuel used in certain passenger
commercial motor vehicles), Committee Report 1st House,
Substituted
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* Estimated Two-Year Net Impact to General Revenue Related Fundsfor *
* HB3159, Committee Report 1st House, Substituted: negative impact *
* of $(723,000) through the biennium ending August 31, 2001. *
* *
* The bill would make no appropriation but could provide the legal *
* basis for an appropriation of funds to implement the provisions of *
* the bill. *
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General Revenue-Related Funds, Five-Year Impact:
****************************************************
* Fiscal Year Probable Net Positive/(Negative) *
* Impact to General Revenue Related *
* Funds *
* 2000 $(354,000) *
* 2001 (369,000) *
* 2002 (384,000) *
* 2003 (401,000) *
* 2004 (418,000) *
****************************************************
All Funds, Five-Year Impact:
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*Fiscal Probable Probable Probable Probable *
* Year Revenue Revenue Revenue Federal Revenue *
* Gain/(Loss) Gain/(Loss) Gain/(Loss) Gain/(Loss) *
* from General from Available from State from State *
* Revenue Fund School Fund Highway Fund Highway Fund *
* 0001 0002 0006 0006 *
* 2000 $(15,000) $(339,000) $(1,016,000) $0 *
* 2001 (16,000) (353,000) (1,058,000) 0 *
* 2002 (16,000) (368,000) (1,104,000) (376,000) *
* 2003 (17,000) (384,000) (1,152,000) (1,576,000) *
* 2004 (18,000) (400,000) (1,200,000) (1,635,000) *
***************************************************************************
Fiscal Analysis
The bill would add an exception to the diesel fuel tax, as well a new
category to the list of refunds of taxes paid on excepted uses of diesel
fuel.
The bill would allow the new exception or refund on diesel fuel sold by a
permitted supplier to the owner of certain commercial motor vehicles
when such diesel fuel was used in the transportation of passengers in
intercity scheduled bus service between points in Texas over fixed
routes. Commercial motor vehicles with a gross weight under 48,000
pounds used to transport more than 15 passengers, including the driver
would be eligible.
Methodology
This note is based on a Comptroller's Office analysis of 1998 Texas Bus
Association data for miles driven in intercity scheduled bus service
between points in Texas over fixed routes by the defined vehicles. The
mileage figures were subjected to an average fuel consumption factor to
arrive at gallons of diesel fuel used; the gallonage was then multiplied
by the diesel fuel tax rate. The resulting tax amount was subjected to
projected changes in the Comptroller's Fall 1998 Economic Forecast for
Texas resident population and for the Consumer Price Index through fiscal
2004. The resulting amounts were allocated according to the motor fuel
allocation sections of the Tax Code.
Were Texas to increase its state motor fuel tax collections, the federal
government could more accurately attribute highway users' federal tax
dollars to Texas, increasing Texas' federal apportionment. As this bill
would go into effect September 1, 1999, decreased revenues begin to be
realized in October 1999. As such, taxable fuel volume decreases would
be attributed to calendar 2000 federal motor fuel tax contributions to
the Federal Highway Trust Fund (FHTF) and would be allocated back to
Texas in fiscal 2002.
Local Government Impact
No fiscal implication to units of local government is anticipated.
Source Agencies: 304 Comptroller of Public Accounts
LBB Staff: JK, BB, BR, CT