LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 77th Regular Session
May 14, 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 the disposition by counties
of motor vehicle registration fees and sales tax
revenue.), Committee Report 2nd House, Substituted
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* Estimated Two-year Net Impact to General Revenue Related Funds for *
* SB180, Committee Report 2nd House, Substituted: positive impact *
* of $345,000 through the biennium ending August 31, 2003. *
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General Revenue-Related Funds, Five-Year Impact:
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* Fiscal Year Probable Net Positive/(Negative) *
* Impact to General Revenue Related *
* Funds *
* 2002 $166,000 *
* 2003 179,000 *
* 2004 189,000 *
* 2005 201,000 *
* 2006 213,000 *
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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 $166,000 $(718,000) $552,000 *
* 2003 179,000 (775,000) 596,000 *
* 2004 189,000 (818,000) 629,000 *
* 2005 201,000 (868,000) 667,000 *
* 2006 213,000 (921,000) 708,000 *
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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.
The bill would also change the source of revenues retained by the
counties, or paid to the counties from the General Revenue Fund 0001, to
the State Highway Fund 0006.
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 under the formula. Whereas
currently a county tax assessor-collector may petition the Comptroller to
keep motor vehicle sales taxes collected if the county does not collect
its allowed allocation of registration and motor vehicle sales tax money,
the bill would mandate that all collections retained by a county be
paid out of the State Highway Fund 0006.
The bill would repeal the current provision in the Tax Code that allows a
county to petition the Comptroller to keep motor vehicle sales tax money
collected in certain cases.
The net effect would be an increase in revenues to Fund 0001 and a
decrease in revenues to Fund 0006. All county increases would go to a
dedicated county 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 from
motor vehicle sales tax revenues and registration fees, as indicated in
the table above.
Source Agencies: 304 Comptroller of Public Accounts
LBB Staff: JK, SD, WP, SM