Honorable Dennis Bonnen, Chair, House Committee on Ways & Means
FROM:
Ursula Parks, Director, Legislative Budget Board
IN RE:
HB3229 by Cyrier (Relating to the motor vehicle sales tax imposed on the purchase, rental, or use of certain emergency services vehicles.), As Introduced
Estimated Two-year Net Impact to General Revenue Related Funds for HB3229, As Introduced: a negative impact of ($312,000) through the biennium ending August 31, 2017.
Fiscal Year
Probable Net Positive/(Negative) Impact to General Revenue Related Funds
2016
($156,000)
2017
($156,000)
2018
($156,000)
2019
($156,000)
2020
($156,000)
Fiscal Year
Probable Revenue (Loss) from General Revenue Fund 1
2016
($156,000)
2017
($156,000)
2018
($156,000)
2019
($156,000)
2020
($156,000)
Fiscal Analysis
The bill would amend Section 152.087 of the Tax Code to exempt ambulances, and emergency services chief or supervisor vehicles, from the motor vehicle sales and use tax when purchased by an entity that has an agreement with a local governmental entity to provide emergency ambulance services.
The bill would take effect September 1, 2015.
Methodology
Based on Texas motor vehicle title transaction records, there are $2.5 million in annual taxable purchases of vehicles that would be exempted by this bill. The average annual tax revenue for those sales would be $156,000.
Local Government Impact
No fiscal implication to units of local government is anticipated.