LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 76th Regular Session
May 17, 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), Committee Report
2nd House, Substituted
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* Estimated Two-year Net Impact to General Revenue Related Fundsfor *
* SB1547, Committee Report 2nd House, Substituted: positive impact *
* of $4,578,000 through the biennium ending August 31, 2001. *
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General Revenue-Related Funds, Five-Year Impact:
****************************************************
* Fiscal Year Probable Net Positive/(Negative) *
* Impact to General Revenue Related *
* Funds *
* 2000 $(2,116,896) *
* 2001 6,694,896 *
* 2002 7,421,703 *
* 2003 7,772,836 *
* 2004 10,087,776 *
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All Funds, Five-Year Impact:
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*Fiscal Probable Probable Probable Change in *
* Year Revenue Savings/(Cost) Revenue Number of State *
* Gain/(Loss) from General Gain/(Loss) Employees from *
* from General Revenue Fund from State FY 1999 *
* Revenue Fund 0001 Highway Fund *
* 0001 0006 *
* 2000 $0 $(2,116,896) $0 0.0 *
* 2001 7,378,000 (683,104) 20,576,000 12.0 *
* 2002 7,891,000 (469,297) 22,179,000 12.0 *
* 2003 8,246,000 (473,164) 32,074,000 12.0 *
* 2004 10,565,000 (477,224) 52,998,000 12.0 *
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Fiscal Analysis
The bill amends motor fuel tax law. The bill would increase permit
holders' reporting requirements, impose new restrictions on the
importation and exportation of motor fuel, recognize dyed diesel fuel,
require reports to be submitted to the Comptroller's Office in an
electronic format, define blending and blended products, and limit the
period of validity of inactive permits. The bill would require
transporters of motor fuel to supply the Comptroller with quarterly
reports of their records.
The bill would take effect September 1, 2000 and only would apply to
motor fuel that is imported or exported, or on which the first sale
occurred, on or after that date.
Methodology
This fiscal note is based on an analysis by the Comptroller's Office of
the experience of other states which have implemented similar motor
legislation to reduce the opportunity for motor fuel tax fraud.
Estimates were made for the provisions in this bill that would reduce the
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.
Assuming that this bill would go into effect September 1, 2000 and that
increased revenues would start in calendar 2000, taxable fuel volume
increases would be attributed to the calendar 2001 motor fuel tax
contributions to the Federal Highway Trust Fund which would be made
available to the Texas Department of Transportation (TxDOT) in fiscal
year 2003. These additional federal highway funds are included in the
fiscal year 2003 and 2004 State Highway Fund 006 revenues.
Local Government Impact
Local units of government would benefit to the degree that TxDOT would
utilize the extra state and federal revenue made by the bill to
construct roads that otherwise would have been constructed with local
government funds.
Source Agencies: 304 Comptroller of Public Accounts
LBB Staff: JK, BB, BR, CT