LEGISLATIVE BUDGET BOARD
                              Austin, Texas
                                     
                    FISCAL NOTE, 77th Regular Session
  
                               May 11, 2001
  
  
          TO:  Honorable Frank Madla, Chair, Senate Committee on
               Intergovernmental Relations
  
        FROM:  John Keel, Director, Legislative Budget Board
  
       IN RE:  HB3049  by Ramsay (Relating to the use of interest earned
               on motor vehicle inventory tax escrow accounts.), As
               Engrossed
  
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*  No fiscal implication to the State is anticipated.                    *
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The bill would prohibit interest earned on motor vehicle inventory tax
escrow accounts from being used to supplement the salary or personal
expenses of a county tax assessor-collector. 

Currently, county tax assessors-collectors are allowed to retain any
interest generated by motor vehicle inventory tax escrow accounts to
defray the cost of administering the tax prepayment program.  According
to the Tax Assessors-Collectors Association of Texas, some county tax
assessors-collectors use the money to buy equipment, such as computers,
and others use it to supplement the salaries of employees.
  
Local Government Impact
  
No fiscal implication to units of local government is anticipated.
  
  
Source Agencies:   304   Comptroller of Public Accounts
LBB Staff:         JK, DB, SD, BR