SRC-SEW S.B. 412 77(R)   BILL ANALYSIS


Senate Research Center   S.B. 412
77R3243 SMJ-FBy: Shapiro
Finance
2/19/2001
As Filed


DIGEST AND PURPOSE 

Under current law since 1992, counties retain a portion of the vehicle
registration fees equivalent to five percent of the vehicle sales tax, and
send 100 percent of the vehicle sales tax to general revenue.  Texas
currently can only fund approximately 36 percent of needed transportation
projects. Prior to 1992, 100 percent of motor vehicle registration fees
funded highway construction while counties retained five percent of
collected vehicle sales tax and the remaining 95 percent went to general
revenue. As proposed, S.B. 412 utilizes the pre-1992 tax allocation formula
and provides an additional $100 million annually in increased
transportation funding, without affecting funds retained by counties. 

RULEMAKING AUTHORITY

This bill does not expressly grant any additional rulemaking authority to a
state officer, institution, or agency. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Chapter 152G, Tax Code, by amending Section 152.121 and
adding Section 152.123, as follows: 

Sec. 152.121.  Makes a conforming change regarding new Section 152.123.
Deletes language requiring the comptroller, if the amount of net
collections under Chapter 502 (Registration of Vehicles), Transportation
Code, is insufficient to cover the amount of those net collections
authorized to be retained by a county as a percentage of the tax and
penalties collected under this chapter, on request of the county tax
assessor-collector to authorize the county to retain a portion of the tax
and penalties collected to cover the deficiency. 

Sec. 152.123.  TAX RETAINED BY COUNTY.  Requires that, of the taxes and
penalties collected by a county tax assessor-collector under this chapter,
the assessor-collector retain five percent of the tax and penalties
collected by the assessor-collector under this chapter. Requires the county
tax assessor-collector to retain during each calendar year an amount equal
to five percent of certain stated taxes and penalties. Requires the county
to credit the amounts retained under Subsection (a) to the county road and
bridge fund to be used only for certain stated purposes. 

SECTION 2.  Amends Section 502.102(b), Transportation Code, to delete
language requiring a county assessor-collector to credit to the county road
and bridge fund each Monday an amount equal to five percent of the tax and
penalties collected by the assessor-collector under Chapter 152 (Taxes on
Sale, Rental and Use of Motor Vehicles), Tax Code, in the preceding
calendar year and an amount equal to five percent of the tax and penalties
collected by the comptroller under Section 152.047, Tax Code, in the
preceding calendar year until the amount so credited for the calendar year
equals a certain total. 

SECTION 3.  Repealer:  Section 502.108(e) (regarding the use of
registration fees that represent amounts of tax and penalties collected
under Chapter 152, Tax Code, during the preceding year that  are retained
by a county), Transportation Code. 

SECTION 4.  Effective date:  September 1, 2001.