TO: | Honorable Jim Keffer, Chair, House Committee on Ways & Means |
FROM: | John S. O'Brien, Deputy Director, Legislative Budget Board |
IN RE: | HB5 by Krusee (Relating to the rate of the state gasoline and diesel fuel taxes.), Committee Report 1st House, Substituted |
Fiscal Year | Probable Net Positive/(Negative) Impact to General Revenue Related Funds |
---|---|
2006 | $14,789,000 |
2007 | $30,864,000 |
2008 | $49,113,000 |
2009 | $68,379,000 |
2010 | $89,079,000 |
Fiscal Year | Probable Revenue Gain/(Loss) from GENERAL REVENUE FUND 1 |
Probable Revenue Gain/(Loss) from AVAILABLE SCHOOL FUND 2 |
Probable Revenue Gain/(Loss) from STATE HIGHWAY FUND 6 |
Probable Revenue Gain/(Loss) from GENERAL REVENUE FUND-Dedicated to Game, Fish, and Water Safety 9 |
---|---|---|---|---|
2006 | $321,000 | $14,468,000 | $43,405,000 | $206,000 |
2007 | $666,000 | $30,198,000 | $90,594,000 | $428,000 |
2008 | $1,053,000 | $48,060,000 | $144,180,000 | $676,000 |
2009 | $1,457,000 | $66,922,000 | $200,767,000 | $935,000 |
2010 | $1,883,000 | $87,196,000 | $261,588,000 | $1,209,000 |
The bill would amend Chapter 162 of the Tax Code to provide for an increase or decrease in the gasoline and diesel fuel tax rates on October 1 of each year in relation to the percentage change in the consumer price index.
The official price index would be the U.S. Bureau of Labor Statistics consumer price index that measures the average changes in prices of goods and services purchased by urban wage earners and clerical workers' families and single workers living alone (CPI-W: Seasonally Adjusted U.S. City Average—All Items). The gasoline and diesel fuel tax rates would be adjusted on October 1 of each year by a percentage equal to the consumer price index percentage change for the preceding fiscal year.
Each year, no later than September 1, the Legislative Budget Board (LBB) would: 1) compute the new tax rate, 2) provide the new tax rate to the Secretary of State for publication in the Texas Register; and 3) notify each affected license holder of the applicable new tax rate.
Estimates of the increase in gasoline and diesel fuel tax revenues were obtained by adjusting the Comptroller's 2006-07 Biennial Revenue Estimate to reflect the increased tax rates. The estimate was also adjusted to reflect statutory collection lags.
The gain to the General Revenue Fund 0001 would result from the increase in unclaimed motorboat refunds (including the portion that used to go to the Available School Fund 0002) and other unclaimed refunds.
The LBB estimates costs of $50,000 annually in staff time and postage to notify license holders of the new tax rates.
Source Agencies: | 304 Comptroller of Public Accounts
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LBB Staff: | JOB, SD, WP, CT
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