LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 76th Regular Session
April 9, 1999
TO: Honorable Bill Ratliff, Chair, Senate Committee on Finance
FROM: John Keel, Director, Legislative Budget Board
IN RE: SB1547 by Bivins (relating to the sales and use tax on
gasoline, diesel fuel, and liquefied gas; providing
penalties), As Introduced
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* Estimated Two-Year Net Impact to General Revenue Related Fundsfor *
* SB1547, As Introduced: negative impact of $(39,681,046) 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 $(4,007,612) *
* 2001 (35,673,434) *
* 2002 6,472,863 *
* 2003 (6,827,526) *
* 2004 (13,762,185) *
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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 $0 $0 $0 $0 *
* 2001 (24,195,888) (8,986,000) (42,087,000) 0 *
* 2002 (33,489,000) 41,195,000 106,940,000 0 *
* 2003 (34,984,000) 29,395,000 71,421,000 0 *
* 2004 (36,372,000) 23,854,000 54,547,000 (57,602,000) *
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*Fiscal Probable Revenue ProbaSavings/(Cost) Change in Number of *
* Year Gain/(Loss) from New from General Revenue State Employees from *
* State Fund/ Outside Fund FY 1999 *
* of General Revenue 0001 *
* 8041 *
* 2000 $0 $(4,007,612) 7.0 *
* 2001 18,283,000 (2,491,546) 27.0 *
* 2002 30,847,000 (1,233,137) 27.0 *
* 2003 31,372,000 (1,238,526) 27.0 *
* 2004 32,229,000 (1,244,185) 0.0 *
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Fiscal Analysis
The bill would create a new body of motor fuel tax law and would move the
point of collection for motor fuels from the wholesaler to the terminal
rack. The bill would add 10 new licenses and license fees, and would
eliminate five permits that are currently required.
Suppliers would remit tax twice a month for sales made in that month.
Currently, wholesalers remit taxes owed on sales made in the previous
month by the 25th day of the following month. This bill would create new
exemptions (e.g., state and local government) for some on-road uses of
motor fuel (mirroring federal law). It would eliminate the ability to
claim a refund for some types of motor fuel use.
The bill would exempt from tax distributors' inventories that are held
outside the bulk transfer system on the effective date of the bill. The
bill would require new duties of the Comptroller of Public Accounts, the
Department of Agriculture, and the Department of Public Safety.
This bill would alter the allocation of gasoline taxes. Currently the
Comptroller is required to determine the number of gallons of fuel used
in motorboats on which the gasoline tax has been paid to this state, and
on which refund of the tax has not been made within the time allowed; the
Comptroller then computes the amount of taxes that would have been
refunded had claims been filed. Currently, the allocation of the
unclaimed refunds is: 25 percent to the General Revenue Fund,
undedicated, and the remaining 75 percent to the General Revenue Fund for
the use by the Parks and Wildlife Department (TPWD). The bill would
require the Comptroller to make the same determination of unclaimed motor
boat refunds; however, the General Revenue allocation would be directed
to the Available School Fund.
The bill would take effect January 1, 2001.
Methodology
This fiscal note is based upon information provided by the Comptroller's
Office.
If Texas were to increase its state motor fuel tax collection, the
federal government could more accurately attribute highway users'
federal tax dollars to Texas, increasing Texas' federal funds. Assuming
an effective date of January 1, 2001, the calendar 2001 taxable fuel
volume increases would be attributed to calendar 2002 federal motor fuel
tax contributions to the Federal Highway Trust Fund (FHTF) and would be
allocated back to Texas in fiscal year 2004. The revenue effects of the
allocation of FHTF dollars back to Texas would not be realized for
approximately three years due to the timing of the federal allocation.
The gain in federal highway dollars to Texas would turn positive in
2005, and stay positive thereafter. Fiscal year 2004 provides an
unaffected picture of what the long-term effect of the bill would be for
state revenues.
Local Government Impact
No significant fiscal implication to units of local government is
anticipated. Local government would benefit from the state tax
exemption of on-road fuel use by local government vehicles. However,
the loss of state revenue by such use would make available less funding
for Texas Department of Transportation construction and maintenance of
local roads.
Source Agencies: 304 Comptroller of Public Accounts
LBB Staff: JK, BB, BR, CT