H.B. 245 78(R)    BILL ANALYSIS


H.B. 245
By: Keffer, Jim
Ways & Means
Committee Report (Unamended)



BACKGROUND AND PURPOSE 

Prior to 1992, counties would figure and collect motor vehicle
registration revenue separately from sales tax revenue.  At that time,
counties would collect the sales tax and retain five percent of the funds
at the end of the month.  In 1992, the state changed the reimbursement
method for sales tax money.  Currently, counties are required to send in
all of the sales tax money and retain the equivalent of the five percent
sales tax from registration money.  In many smaller counties, the county
does not collect enough registration money to retain the sales tax
commission form the registration funds.  As a result, these smaller
counties must wait a full calendar year to receive the five percent
reimbursement from the state.  The county loses the benefit from the
immediate use of the funds or investment of their commission funds.
Additionally, there is a number of counties that actually lose part of the
registration money due to the manner in which the reimbursement is
calculated. 

House Bill 245 moves the five percent sales tax reimbursement to the end
of the calculation to allow the smaller counties to receive full
reimbursement for motor vehicle registration services from the state.  It
will not alter the fact that small counties must wait to receive the five
percent motor vehicle sales tax fees.  This shift in the calculation will
not affect larger counties. 

RULEMAKING AUTHORITY

It is the committee's opinion that this bill does not expressly grant any
additional rulemaking authority to a state officer, department, agency, or
institution. 

ANALYSIS

Amends the Transportation Code to modify the disposition by counties of
motor vehicle registration fees and sales tax revenue.  Requires that on
each Monday the county assessor-collector, if the credits to the county
road and bridge fund equal or exceed the maximum allowed amounts, to
credit to the county road and bridge fund an additional amount equal to
five percent of the tax and penalties collected in the preceding calendar
year by the assessor-collector and the comptroller.  Requires the
comptroller, on request of the county tax assessor-collector, to remit to
the county the amount of a deficiency from the collected tax and penalties
if the amount of collections is insufficient to cover the amount that a
county is authorized to retain. 

EFFECTIVE DATE

January 1,  2004.