LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 77th Regular Session April 9, 2001 TO: Honorable Bill G. Carter, Chair, House Committee on Urban Affairs FROM: John Keel, Director, Legislative Budget Board IN RE: HB3557 by Shields (Relating to advanced transportation districts and the funding of those districts.), As Introduced ************************************************************************** * No fiscal implication to the State is anticipated. * ************************************************************************** The bill would amend the definition of advanced transportation in Subtitle K, Section 451.701 of the Transportation Code to include high occupancy toll lanes, express lanes, general purpose freeway lanes, general purpose arterial lanes, freeway interchanges, busways, bus lanes, bus rapid transit, traffic management systems and transportation improvements along public ways. The definition would also include operating costs and management in addition to planning. The bill would allow the county commissioners court to order an election to impose a sales and use tax for advanced transportation at a rate ranging from 0.25 percent to 0.5 percent in increments of 0.125 percent. The entity ordering the election would pay the costs of the election. The proceeds of the sales and use tax must be used in conformity with the metropolitan transportation plan of the metropolitan planning organization. The bill would take effect September 1, 2001. Local Government Impact The bill would only apply to a metropolitan transit authority in which a sales and use tax is imposed at a rate of 0.5 percent and in which the principal municipality has a population of more than 700,000. Under current law, the board of a transit authority may create an advanced transportation district within its boundaries and impose a sales and use tax at a rate of 0.25 percent. According to the San Antonio Metropolitan Transit Authority, the bill would generate the following revenue for the advanced transportation district if the sales tax was approved by a majority of voters: at the rate of 0.125 percent, the sales tax would produce $18.4 million; at the rate of 0.25 percent, the sales tax would produce $36.9 million; and at the rate of 0.5 percent, the sales tax would produce $73.9 million. There would be an estimated one-time cost if a special election was held. According to the San Antonio Metropolitan Transit Authority, the previous special election cost the district $300,000. However, if the election was held in November, the election costs would be minimal. Source Agencies: 304 Comptroller of Public Accounts LBB Staff: JK, DB