LEGISLATIVE BUDGET BOARD
                              Austin, Texas
                                     
                    FISCAL NOTE, 77th Regular Session
  
                              April 24, 2001
  
  
          TO:  Honorable Rene Oliveira, Chair, House Committee on Ways &
               Means
  
        FROM:  John Keel, Director, Legislative Budget Board
  
       IN RE:  SB180  by Fraser (Relating to disposition by counties of
               motor vehicle registration fees and sales tax revenue.),
               As Engrossed
  
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*  Estimated Two-year Net Impact to General Revenue Related Funds for    *
*  SB180, As Engrossed:  negative impact of $(2,296,000) through the     *
*  biennium ending August 31, 2003.                                      *
**************************************************************************
  
General Revenue-Related Funds, Five-Year Impact:
  
          ****************************************************
          *  Fiscal Year  Probable Net Positive/(Negative)   *
          *               Impact to General Revenue Related  *
          *                             Funds                *
          *       2002                         $(1,104,000)  *
          *       2003                          (1,192,000)  *
          *       2004                          (1,258,000)  *
          *       2005                          (1,334,000)  *
          *       2006                          (1,416,000)  *
          ****************************************************
  
All Funds, Five-Year Impact:
  
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*Fiscal    Probable Revenue     Probable Revenue     Probable Revenue    *
* Year      Gain/(Loss) to    Gain/(Loss) to State    Gain/(Loss) to     *
*        General Revenue Fund     Highway Fund      Counties' Road and   *
*                0001                 0006             Bridge Funds      *
*  2002           $(1,104,000)             $552,000             $552,000 *
*  2003            (1,192,000)              596,000              596,000 *
*  2004            (1,258,000)              629,000              629,000 *
*  2005            (1,334,000)              667,000              667,000 *
*  2006            (1,416,000)              708,000              708,000 *
**************************************************************************
  
Fiscal Analysis
  
The bill would amend Chapter 152 of the Tax Code and Chapter 502 of the
Transportation Code to change the formula used to determine the amount of
registration fees and motor vehicle sales and use tax collections that
would be retained by a county tax assessor-collector as the county's
reimbursement for processing motor vehicle transactions.   County tax
assessor-collectors, in certain circumstances, would be given the
authority to estimate any deficiencies under the formula.

The bill would take effect January 1, 2002.
  
  
Methodology
  
Reimbursements for Texas counties were computed under the current formula
and the proposed formula using fiscal and calendar 2000 data.

Approximately 61 Texas counties, each with a population of less than
15,000, would receive additional revenues in the form of additional
motor vehicle sales taxes retained.  The net effect would be to increase
revenues to the State Highway Fund 0006 and decrease revenues to the
General Revenue Fund 0001.  All county increases would go to a dedicated
road and bridge fund.  The fiscal impact for 2002 was adjusted for the
January 2002 effective date.
  
  
Local Government Impact
  
Local units of government would have a corresponding fiscal impact, as
indicated in the table above.
  
  
Source Agencies:   304   Comptroller of Public Accounts
LBB Staff:         JK, SD, WP, SM