LEGISLATIVE BUDGET BOARD
Austin, Texas
 
FISCAL NOTE, 81ST LEGISLATIVE REGULAR SESSION
 
April 19, 2009

TO:
Honorable Rene Oliveira, Chair, House Committee on Ways & Means
 
FROM:
John S. O'Brien, Director, Legislative Budget Board
 
IN RE:
HB411 by Isett (Relating to motor vehicle sales and use taxes.), As Introduced



The bill will have a direct impact of a revenue loss to the Property Tax Relief Fund of $25,274,000 for the 2010-11 biennium.  Any loss to the Property Tax Relief Fund will have to be made up with General Revenue of the same amount to fund property tax relief.




Fiscal Year Probable Net Positive/(Negative) Impact to General Revenue Related Funds
2010 $0
2011 $0
2012 $0
2013 $0
2014 $0




Fiscal Year Probable Revenue (Loss) from
Property Tax Relief Fund
304
Probable Revenue Gain from
State Highway Fund
6
Probable Revenue (Loss) from
Counties
2010 ($12,323,000) $316,000 ($632,000)
2011 ($12,951,000) $267,000 ($668,000)
2012 ($13,391,000) $208,000 ($694,000)
2013 ($13,860,000) $145,000 ($722,000)
2014 ($14,345,000) $75,000 ($751,000)

Fiscal Analysis

The bill would amend the Chapter 152 of the Tax Code as it relates to the computation of motor vehicle sales and use taxes.

The bill would repeal the standard presumptive value method of calculating motor vehicle sales and use tax due on the sale of a motor vehicle in a private-party transaction.  The section of the law dedicating the motor vehicle sales and use taxes collected in these transactions to the Property Tax Relief Fund 0304 would also be repealed.

The bill would take effect September 1, 2009.


Methodology

The estimated fiscal impacts are based on motor vehicle sales and use tax computed and collected using the presumptive value method, and then deposited to the Property Tax Relief Fund as shown in the 2010-11 Biennial Revenue Estimate.  The impact on counties reflect the loss of the 5 percent commission associated with motor vehicle sales tax receipts related to presumptive value.  A portion of the county commission comes from State Highway Fund, therefore commissions not paid to the counties would be a gain to that fund.  The declining gain to the State Highway Fund is due to the declining percentage of the commission paid out of that fund, as required under current law.

Local Government Impact

The impact on counties reflect the loss of the 5 percent commission associated with motor vehicle sales tax receipts related to presumptive value.


Source Agencies:
304 Comptroller of Public Accounts, 601 Department of Transportation
LBB Staff:
JOB, MN, SD, KK