LEGISLATIVE BUDGET BOARD
                              Austin, Texas
                                     
                    FISCAL NOTE, 77th Regular Session
  
                              March 14, 2001
  
  
          TO:  Honorable Rodney Ellis, Chair, Senate Committee on Finance
  
        FROM:  John Keel, Director, Legislative Budget Board
  
       IN RE:  SJR27  by Lindsay (Proposing a constitutional amendment
               establishing a special motor fuels tax and dedicating the
               proceeds of the special tax to the Texas Department of
               Transportation and to the funding of group health
               benefits for employees of school districts.), As
               Introduced
  
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*  No fiscal implication to the State is anticipated, other than the     *
*  cost of publication.                                                  *
*                                                                        *
*  The cost to the state for publication of the resolution is $80,000.   *
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The resolution would propose a constitutional amendment authorizing the
establishment of a special motor fuels tax and dedicating the proceeds of
the tax to certain purposes.  As the imposition of the resolution's tax
would require additional proposed legislative action, the resolution
would have no fiscal impact.

The proposed amendment would require the Legislature to impose an
additional special tax of $0.04 on the sale of motor fuels used to propel
motor vehicles over the public roadways.  The tax would be in addition
to the current taxes assessed on motor fuels used to propel motor
vehicles on the public roads.  The proposed amendment would allocate
$0.01 of the tax to the Available School Fund 0002, to be used for the
sole purpose of funding group health benefits for employees of school
districts.  The remaining $0.03 would be allocated to the Texas
Department of Transportation, of which not more than $0.01 could be used
for the purpose of paying debt service.

It is estimated that motor fuel taxes will generate approximately $5.8
billion over the 2002-2003 biennium.  As an illustration, adjusting for
the additional $0.04 tax, the total fiscal gain could be expected to be
on the order of $600 million per year upon full phase-in, depending on
the effective date of the enabling legislation.

This proposed constitutional amendment would be submitted to the voters
at an election to be held November 6, 2001.
  
Local Government Impact
  
No fiscal implication to units of local government is anticipated.
  
  
Source Agencies:   307   Secretary of State, 601   Texas Department of
                   Transportation, 304   Comptroller of Public Accounts
LBB Staff:         JK, SD, WP, CT