TO: | Honorable Joseph Pickett, Chair, House Committee on Transportation |
FROM: | John S. O'Brien, Director, Legislative Budget Board |
IN RE: | HB2412 by Howard, Charlie (Relating to the registration and compulsory inspection of certain street rods and custom vehicles.), As Introduced |
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 Gain/(Loss) from State Highway Fund 6 |
Probable Revenue Gain/(Loss) from Counties |
---|---|---|
2010 | ($21,000) | ($579,000) |
2011 | ($1,259,500) | ($690,500) |
2012 | ($1,510,500) | ($789,500) |
2013 | ($1,761,500) | ($888,500) |
2014 | $465,000 | ($965,000) |
Based on the analysis and information provided by TxDOT, it is assumed approximately 30,000 vehicles would apply for the new custom vehicle and street rod plates in fiscal year 2010 and an additional 5,000 would apply each year thereafter. For the purposes of this analysis, it is assumed that: these vehicles are currently registered annually at a fee of $60; and the vehicles would pay a $50, five-year exhibition plate fee ($10 per year) for a custom vehicle or street rod plate under the provisions of the bill. TxDOT indicates that the specialty license plate series issued under Section 504.502 are issued for a five-year period: the current series is set to expire in fiscal year 2013. It is assumed all applicable specialty plate holders would purchase new specialty plates in fiscal year 2014 at the $50, five-year registration rate.
Based on the information and assumptions above, it is assumed the provisions of the bill would result in a revenue loss from applicable vehicles that would no longer pay a $60 annual registration fee. The total annual revenue losses are estimated to be $1.8 million in fiscal year 2010; $2.1 million in fiscal year 2011; $2.4 million in fiscal year 2012; $2.7 million in fiscal year 2013; and $3,000,000 in fiscal year 2014. Approximately 33 percent of registration fee revenues are retained by the counties. The remainder is deposited to the State Highway Fund.
Also based on the information and assumptions above, it is assumed the provisions of the bill would result in a revenue gain from specialty license plate fees in the amounts of $1.2 million in fiscal year 2010; $150,000 in fiscal year 2011; $100,000 in fiscal year 2012; $50,000 in fiscal year 2013; and $2.5 million in fiscal year 2014. Under current law, 50 cents from each of these specialty plate fees would be retained by the counties: the remainder would be deposited to the State Highway Fund.
Based on the analysis of TxDOT, it is assumed any costs or duties associated with implementing the provisions of the bill could be absorbed within existing resources.
Source Agencies: | 601 Department of Transportation
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LBB Staff: | JOB, KJG, MW, TG
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