LEGISLATIVE BUDGET BOARD
Austin, Texas
 
FISCAL NOTE, 79TH LEGISLATIVE REGULAR SESSION
 
March 29, 2005

TO:
Honorable Jim Keffer, Chair, House Committee on Ways & Means
 
FROM:
John S. O'Brien, Deputy Director, Legislative Budget Board
 
IN RE:
HB917 by Krusee (Relating to a credit or refund for diesel fuel taxes paid on diesel fuel used in this state by auxiliary power units or power take-off equipment.), As Introduced



Estimated Two-year Net Impact to General Revenue Related Funds for HB917, As Introduced: a negative impact of ($3,663,000) through the biennium ending August 31, 2007.



Fiscal Year Probable Net Positive/(Negative) Impact to General Revenue Related Funds
2006 ($1,800,000)
2007 ($1,863,000)
2008 ($1,966,000)
2009 ($2,075,000)
2010 ($2,190,000)




Fiscal Year Probable Revenue Gain/(Loss) from
AVAILABLE SCHOOL FUND
2 		Probable Revenue Gain/(Loss) from
STATE HIGHWAY FUND
6
2006 ($1,800,000) ($5,400,000)
2007 ($1,863,000) ($5,589,000)
2008 ($1,966,000) ($5,898,000)
2009 ($2,075,000) ($6,225,000)
2010 ($2,190,000) ($6,569,000)

Fiscal Analysis

The bill would amend Chapter 162 of the Tax Code to allow a credit or refund of diesel fuel tax paid on diesel fuel used for auxiliary power units or power take off equipment on any motor vehicle.

The bill would take effect September 1, 2005.


Methodology

This estimate is based upon an analysis made by the Comptroller's Office. The bill would reinstate the auxiliary power unit, power take off deduction by allowing a license holder to take a credit—or a non-license holder to file a refund claim—for the amount of diesel fuel tax paid on diesel fuel used by an auxiliary power unit or power take off equipment on any motor vehicle.

An allowance was made for the additional amount of diesel fuel tax that would be given as a credit or refunded under the provisions of the bill. The estimate for fiscal 2006 was adjusted for the statutory lag in motor fuel tax remittances. The change in revenues was then subjected to the statutory allocation of diesel fuel taxes.


Local Government Impact

No fiscal implication to units of local government is anticipated.


Source Agencies:
304 Comptroller of Public Accounts
LBB Staff:
JOB, SD, WP, CT