TO: | Honorable Sid Miller, Chair, House Committee on Homeland Security & Public Safety |
FROM: | John S O'Brien, Director, Legislative Budget Board |
IN RE: | HB1810 by Burnam (Relating to the repeal of the driver responsibility program and to the replacement of the revenue derived from the driver responsibility program through an increase in the tax on cigarettes.), As Introduced |
Fiscal Year | Probable Net Positive/(Negative) Impact to General Revenue Related Funds |
---|---|
2012 | $30,313,332 |
2013 | ($8,098,713) |
2014 | ($18,636,673) |
2015 | ($33,896,673) |
2016 | ($22,357,673) |
Fiscal Year | Probable Savings/(Cost) from General Revenue Fund 1 |
Probable Revenue Gain/(Loss) from General Revenue Fund 1 |
Probable Revenue Gain/(Loss) from Property Tax Relief Fund 304 |
Probable Revenue Gain/(Loss) from Trauma Facility And Ems 5111 |
---|---|---|---|---|
2012 | $12,284,332 | $18,029,000 | ($12,500,000) | $18,654,000 |
2013 | $12,700,287 | ($20,799,000) | ($13,810,000) | ($19,529,000) |
2014 | $13,134,327 | ($31,771,000) | ($12,011,000) | ($30,108,000) |
2015 | $13,134,327 | ($47,031,000) | ($12,860,000) | ($45,343,000) |
2016 | $13,134,327 | ($35,492,000) | ($11,185,000) | ($33,785,000) |
Fiscal Year | Change in Number of State Employees from FY 2011 |
---|---|
2012 | (23.5) |
2013 | (35.0) |
2014 | (47.0) |
2015 | (47.0) |
2016 | (47.0) |
DRP surcharges are imposed on persons for a period of 36 months. The bill's repeal of DRP would not forgive surcharges assessed prior to the effective date of the bill, or any outstanding surcharges, or penalties from earlier years. Estimated revenue impacts were derived from the 2012-2013 Biennial Revenue Estimate, adjusted for remittances for prior surcharges assessed which will accrue to the state through fiscal 2013 and projected through 2016.
Since surcharges assessed prior to the effective date of the bill will continue to be collected it is assumed DPS will maintain a reduced level of full-time equivalents to administer the program during the next biennium. Beginning in fiscal year 2012 a savings will be realized from a reduction in costs relating to vendor base compensation for the collection of surcharges.
The proposed tax rate increases would have a negative effect on the taxable consumption of cigarettes and other tobacco products in Texas. Potential revenue collections were adjusted for consumption and tax avoidance effects and for collection lags.
This analysis assumed that allocations would begin when the new tax revenue reached the State Treasury, which would be approximately one month following the bill's effective date.
The Department of Public Safety reports that systems analysis and programming changes would be needed as a result of this bill; the cost of these changes could be absorbed.
Source Agencies: | 304 Comptroller of Public Accounts, 405 Department of Public Safety
|
LBB Staff: | JOB, ESi, SD, AG
|