LEGISLATIVE BUDGET BOARD
                              Austin, Texas
                                     
                    FISCAL NOTE, 76th Regular Session
  
                               May 12, 1999
  
  
          TO:  Honorable Rene Oliveira, Chair, House Committee on Ways &
               Means
  
        FROM:  John Keel, Director, Legislative Budget Board
  
       IN RE:  SB1547  by Bivins (relating to the collection of the tax
               on motor fuels; providing penalties), As Engrossed
  
**************************************************************************
*  Estimated Two-year Net Impact to General Revenue Related Funds for    *
*  SB1547, As Engrossed:  positive impact of $1,751,849 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                         $(4,029,891)  *
          *       2001                            5,781,740  *
          *       2002                            7,373,767  *
          *       2003                            7,723,378  *
          *       2004                           10,036,719  *
          ****************************************************
  
All Funds, Five-Year Impact:
  
***********************************************************************
*Fiscal    Probable    Probable    Probable    Probable   Change in    *
* Year     Revenue     Savings/    Revenue     Revenue    Number of    *
*        Gain/(Loss) (Cost) from Gain/(Loss) Gain/(Loss)    State      *
*            from      General    from State     from     Employees    *
*          General     Revenue     Highway     Federal   from FY 1999  *
*          Revenue       Fund        Fund      Highway                 *
*            Fund        0001        0006       Funds                  *
*            0001                                                      *
*  2000            $0                      $0          $0        12.0  *
*                    $(4,029,891)                                      *
*  2001     7,378,000 (1,596,260)  20,576,000           0        12.0  *
*  2002     7,891,000   (517,233)  22,179,000           0        12.0  *
*  2003     8,246,000   (522,622)  23,188,000           0        12.0  *
*  2004    10,565,000   (528,281)  24,323,000  26,570,000        12.0  *
***********************************************************************
  
Fiscal Analysis
  
The bill would amend the motor fuels tax law.  It would increase
reporting requirements and impose new restrictions in importing/exporting
motor fuel, recognize dyed diesel fuel, require reports to be submitted
to the Comptroller's Office, define blended products and limit the period
of validity of inactive permits.

The bill would take effect September 1, 1999.
  
  
Methodology
  
This fiscal note is based upon information provided by the Comptroller's
Office and centers on those provisions in the bill which would reduce
opportunities for fraud.

If Texas were 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 highway funds.
  
  
Local Government Impact
  
No significant fiscal implication to units of local government is
anticipated.
  
  
Source Agencies:   304   Comptroller of Public Accounts
LBB Staff:         JK, SD, BB, CT