Honorable Tommy Williams, Chair, Senate Committee on Transportation & Homeland Security
FROM:
John S O'Brien, Director, Legislative Budget Board
IN RE:
HB1898 by Pickett (Relating to optional fees for the registration of motor vehicles in certain municipalities.), As Engrossed
No significant fiscal implication to the State is anticipated.
The bill would amend the Transportation Code to authorize the governing body of a municipality that borders the United Mexican States and has a population of 500,000 or more to hold an election regarding the imposition of an additional fee for registering a vehicle in the municipality. Based on the applicability criteria of the bill, the provisions of Section 502.1721 would apply only to the City of El Paso.
If approved by a majority of the voters, the fee imposed may not exceed $10 and may take effect on January 1 of a year. The municipality would be required to notify the county and the Texas Department of Motor Vehicles (DMV) not later than September 1 of the year preceding year the fee takes effect.
A county assessor-collector would be required to apportion the collections for a fee imposed under Section 502.172 or Section 502.1721 crediting 97 percent to the municipal treasurer, or the county road and bridge fund, as appropriate; and the remaining three percent to the DMV for the costs of administering Section 502.1721.
Based on the analysis of the DMV, there would be costs to modify the department’s Registration and Title Systems, the Internet Vehicle Title and Registration System, and the International Registration Plan to allow customers to pay the municipal fee and account for funds. It is assumed any additional work resulting from the provisions of the bill could be reasonably absorbed within current resources.
DMV also reported there would be estimated revenue of $113,965 in FY 2013, and similar amounts in subsequent fiscal years as a result of the three percent retained from an estimated number of vehicle registrations in the City of El Paso. The analysis is based on the assumption that the city would charge the maximum allowable fee of $10 if approved by voters.
Local Government Impact
Because the bill would not have statewide impact on units of local government of the same type or class, no comment from this office is required by the rules of the House/Senate as to its probable fiscal implication on units of local government.