LEGISLATIVE BUDGET BOARD
Austin, Texas
 
FISCAL NOTE, 79TH LEGISLATIVE REGULAR SESSION
 
April 15, 2005

TO:
Honorable Jim Keffer, Chair, House Committee on Ways & Means
 
FROM:
John S. O'Brien, Deputy Director, Legislative Budget Board
 
IN RE:
HB1874 by Otto (Relating to the application of the motor vehicle sales tax emissions reduction surcharge on certain recreational vehicles.), As Introduced



Estimated Two-year Net Impact to General Revenue Related Funds for HB1874, As Introduced: an impact of $0 through the biennium ending August 31, 2007.



Fiscal Year Probable Net Positive/(Negative) Impact to General Revenue Related Funds
2006 $0
2007 $0
2008 $0
2009 $0
2010 $0




Fiscal Year Probable Revenue Gain/(Loss) from
TEXAS EMISSIONS REDUCTION PLAN
5071
2006 ($528,000)
2007 ($543,000)
2008 ($553,000)
2009 ($47,000)
2010 $0

Fiscal Analysis

The bill would amend Section 152.0215 of the Tax Code, relating to the application of the motor vehicle sales tax emissions reduction surcharge on certain recreational vehicles.

The bill would exempt certain recreational vehicles not held or used for the production of income from the surcharge imposed on every retail sale, lease, or use of every on-road diesel motor vehicle that is over 14,000 pounds and that is sold, leased, or used in this state.

The bill would apply only to taxes imposed on or after the effective date of the bill.  The bill would take effect September 1, 2005.


Methodology

It is estimated that Texas accounts for approximately 7.2 percent of new U.S. motor home sales annually, or about 1,670 new class A units. A sample of Texas listings for sale of class A motor homes, model years 1997 through 2005, indicated an average price of approximately $218,400 for model year 2005 and $146,500 for model years 1997 through 2004. A sample of Texas listings for sale of class A motor homes for all model years through 1996 indicated an average price of approximately $76,000.

The surcharge of one percent was then applied and adjusted for trade-in value and non-personal use. A growth rate of two percent was applied annually.

The Texas Emissions Reduction Plan Surcharge expires September 30, 2008.


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, SM