LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 76th Regular Session
April 21, 1999
TO: Honorable Bill Ratliff, Chair, Senate Committee on Finance
FROM: John Keel, Director, Legislative Budget Board
IN RE: SB1068 by Fraser (relating to the disposition of revenue
from the motor vehicle sales tax by certain counties), As
Introduced
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* Estimated Two-Year Net Impact to General Revenue Related Fundsfor *
* SB1068, As Introduced: negative impact of $(1,993,000) through *
* the biennium ending August 31, 2001. *
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General Revenue-Related Funds, Five-Year Impact:
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* Fiscal Year Probable Net Positive/(Negative) *
* Impact to General Revenue Related *
* Funds *
* 2000 $(777,000) *
* 2001 (1,216,000) *
* 2002 (1,294,000) *
* 2003 (1,352,000) *
* 2004 (1,413,000) *
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All Funds, Five-Year Impact:
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*Fiscal Probable Revenue Probable Revenue Probable Revenue *
* Year Gain/(Loss) to Gain/(Loss) to State Gain/(Loss) to *
* General Revenue Fund Highway Fund Counties *
* 0001 0006 *
* 2000 $(777,000) $493,000 $283,000 *
* 2001 (1,216,000) 772,000 443,000 *
* 2002 (1,294,000) 822,000 472,000 *
* 2003 (1,352,000) 859,000 493,000 *
* 2004 (1,413,000) 897,000 515,000 *
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Fiscal Analysis
The bill would amend the Tax and Transportation Codes to set new sales
tax collection and reporting procedures for counties with a population of
10,000 or less. These counties would be allowed to retain 5 percent of
the motor vehicle sales taxes and penalties collected by the tax
assessor-collector.
Counties with a population greater than 10,000 would continue to retain
from their registration collections an amount of up to 5 percent of the
motor vehicle sales and use taxes and penalties. These counties would
continue to remit to the Comptroller all motor vehicle sales and use
taxes, and penalties collected.
The bill would take effect January 1, 2000.
Methodology
There are 89 counties with a population of 10,000 or less, as of July
1997. These counties collected and remitted to the Comptroller
approximately $1.2 million in motor vehicle sales and use taxes and
penalties for fiscal 1998.
Counties are allowed to retain from their registration fees and penalties
an amount equaling up to 5 percent of their motor vehicle sales and use
taxes and penalties collected the previous year. However, 26 of the 89
counties with a population of 10,000 or less have registration
collections so low that they meet a special statutory provision that
allows them to request from the Comptroller that they be allowed to
retain the full portion (5 percent) of sales tax collected.
In effect, the bill would allow the remaining 63 counties with a
population of 10,000 or less to retain 5 percent of motor vehicle sales
tax and penalty collections and to discontinue the practice of retaining
from their registration collections an amount equaling up to 5 percent of
the motor vehicle sales taxes and penalties. Motor vehicle sales and
use taxes from seller financing would be included.
The General Revenue Fund 0001 would lose an amount equal to approximately
5 percent of the motor vehicle sales and use tax collections in each
qualifying county, while the State Highway Fund 0006 would gain from
registration money no longer kept by the counties in lieu of sales tax.
Counties also would gain revenues.
Local Government Impact
Counties would have a corresponding fiscal impact from motor vehicle
sales taxes and penalties, as indicated in the table above.
Source Agencies: 304 Comptroller of Public Accounts
LBB Staff: JK, BB, SM