| TO: | Honorable Tommy Williams, Chair, Senate Committee on Finance |
| FROM: | Ursula Parks, Director, Legislative Budget Board |
| IN RE: | HB16 by Pickett (Relating to state revenues, including the provision and use of revenue for transportation, the transfer of revenue to the available school fund, and the administration of, transfers to, and appropriations from the economic stabilization fund; making contingent appropriations.), As Engrossed |
Estimated Two-year Net Impact to General Revenue Related Funds for HB16, As Engrossed: an impact of $0 through the biennium ending August 31, 2015.
However, the bill would have a negative fiscal impact to the General Revenue Fund
beginning in fiscal year 2016.
| Fiscal Year | Probable Net Positive/(Negative) Impact to General Revenue Related Funds |
|---|---|
| 2014 | $0 |
| 2015 | $0 |
| 2016 | ($191,096,333) |
| 2017 | ($248,749,333) |
| 2018 | ($307,637,333) |
| Fiscal Year | Probable Savings/(Cost) from General Revenue Fund 1 |
Probable Revenue Gain from State Highway Fund 6 |
|---|---|---|
| 2014 | $0 | $0 |
| 2015 | $0 | $0 |
| 2016 | ($191,096,333) | $191,096,333 |
| 2017 | ($248,749,333) | $248,749,333 |
| 2018 | ($307,637,333) | $307,637,333 |
The bill would amend Chapter 152 of the Tax Code relating to the allocation of revenue from the taxes imposed on the sale, rental, or other use of motor vehicles. The bill would amend Chapter 43 of the Education Code and Chapter 162 of the Tax Code, regarding the composition of the Available School Fund and the allocation of motor fuel taxes.
Beginning in fiscal year 2016, the bill would deposit one third of the revenue received from the motor vehicle sales tax, the motor vehicle rental tax, and the other taxes imposed under Chapter 152 of the Tax Code in excess of $3.6 billion, after making the required allocation to the Property Tax Relief Fund, to the credit of the State Highway Fund. Under current law net revenue collections from these taxes are deposited to the General Revenue Fund.
Money deposited to the State Highway Fund from the motor vehicle sales tax under the provisions of the bill may only be appropriated for (1) a purpose authorized under the Texas Constitution, Article VIII, Section 7-a, (2) to repay the principal and interest on GO bonds issued under the Texas Constitution, Article III, Section 49-p, or (3) to pay for a function performed by or under the supervision of TXDOT.
The section of the bill regarding the allocation of motor fuels taxes would take effect January 1, 2014 if the constitutional amendment proposed by HJR 2 takes effect. Otherwise that section of the bill would not take effect.
The section of the bill regarding motor vehicle sales taxes would take effect on the 91st day after the last day of the current legislative session.
The bill makes necessary conforming statutory changes for the companion resolution, HJR 2, 83rd Legislature, 2nd Called Session. The fiscal impact of the allocation change is shown in the fiscal note for HJR 2. Money deposited to the State Highway Fund from the reallocation of Motor Fuels Tax in HJR 2 may only be appropriated for a purpose authorized under the Texas Constitution, Article VIII, Section 7-a.
The bill would appropriate from the Economic Stabilization Fund (ESF) to the Comptroller of Public Accounts (Comptroller) in fiscal years 2014 and 2015 an amount of money equal to the amount by which fiscal years 2014 and 2015 transfers to the ESF, respectively, exceeds transfers estimated in the Comptroller's Biennial Revenue Estimate (BRE). The Comptroller would deposit that amount to the credit of the State Highway Fund. The money deposited would be appropriated to the Texas Department of Transportation for the purposes of constructing, maintaining, and acquiring rights-of-way for public roadways other than toll roads. This section would only take effect if the bill received two-thirds vote and HJR 2, 83rd Legislature, 2nd Called Session is not approved by the voters.
The amount by which the actual transfers to the ESF may exceed the transfers estimated in the BRE cannot be determined so the fiscal impact of this section cannot be determined, but the fiscal impact could be potentially significant.
The bill would make port projects a permissible use of the Texas Mobility Fund, which would expand the number of projects eligible for the Fund.
The bill also establishes a committee comprised of members of the House and Senate to evaluate and make recommendations regarding the composition and disposition of the Economic Stabilization Fund; the committee shall report on their findings no later than November 1, 2014.
The bill would require the Comptroller to deposit to the credit of the State Highway Fund an amount equal to the amount by which the revenue derived from state taxes and fees deposited to the general revenue fund in fiscal years 2014 and 2015 exceeds the estimate of revenue contained in the BRE. The amount of the deposit may not exceed $2 billion. The amount by which actual revenue deposited to the general fund may exceed the amount estimated in the BRE cannot be determined so the fiscal impact of this section cannot be determined, but the fiscal impact could be potentially significant.
| Source Agencies: | 304 Comptroller of Public Accounts
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| LBB Staff: | UP, SD, SJS, KK
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