LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 76th Regular Session February 25, 1999 TO: Honorable Florence Shapiro, Chair, Senate Committee on State Affairs FROM: John Keel, Director, Legislative Budget Board IN RE: SB432 by Ratliff (Relating to the designation of a registration period of less than 12 months by the owner of a motor vehicle or a trailer.), As Introduced ************************************************************************** * Estimated Two-year Net Impact to General Revenue Related Funds for * * SB432, As Introduced: positive impact of $0 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. * ************************************************************************** General Revenue-Related Funds, Five-Year Impact: **************************************************** * Fiscal Year Probable Net Positive/(Negative) * * Impact to General Revenue Related * * Funds * * 2000 $0 * * 2001 0 * * 2002 0 * * 2003 0 * * 2004 0 * **************************************************** All Funds, Five-Year Impact: ************************************************************************** *Fiscal Probable Cost from Probable Revenue Probable Revenue * * Year State Highway Fund Loss from State Loss to Counties * * 0006 Highway Fund * * 0006 * * 2000 $(502,900) $(16,643,756) $(8,321,580) * * 2001 (42,260) (16,881,772) (8,440,500) * * 2002 (42,865) (17,123,162) (8,561,400) * * 2003 (43,477) (17,368,025) (8,684,200) * * 2004 (44,099) (17,616,395) (8,808,000) * ************************************************************************** Fiscal Analysis The bill would permit the owner of a motor vehicle or trailer to designate a registration period of less than 12 months. Provisions of the bill would allow the mandated fee to be computed as one-twelfth of the annual registration fee multiplied by the number of months in the designated registration period. Methodology The Texas Department of Transportation, TxDot, estimated that 5 percent of the annual registrations would be for less than one year and would, on average, be registered for 6 months out of the year. The department estimated total fees assessed, on average, for the registrants would be $30, of which the state receives $20 or 66 percent and the counties $10 or 34 percent. TxDot estimated that the state and counties would have a decrease in net revenue from provisions in the bill. Local Government Impact TxDot estimated that county tax offices would incur a net loss in revenue from allowing vehicles to be registered for a period of less than one year. Source Agencies: LBB Staff: JK, SD, ML