LEGISLATIVE BUDGET BOARD
Austin, Texas
 
FISCAL NOTE, 84TH LEGISLATIVE REGULAR SESSION
 
April 27, 2015

TO:
Honorable Dennis Bonnen, Chair, House Committee on Ways & Means
 
FROM:
Ursula Parks, Director, Legislative Budget Board
 
IN RE:
HB3468 by Parker (Relating to the payment of motor fuel taxes by certain entities that operate ambulances.), As Introduced



Estimated Two-year Net Impact to General Revenue Related Funds for HB3468, As Introduced: a negative impact of ($1,054,000) through the biennium ending August 31, 2017.



Fiscal Year Probable Net Positive/(Negative) Impact to General Revenue Related Funds
2016 ($501,000)
2017 ($553,000)
2018 ($560,000)
2019 ($569,000)
2020 ($578,000)




Fiscal Year Probable Revenue Gain/(Loss) from
Available School Fund
2
Probable Revenue Gain/(Loss) from
State Highway Fund
6
2016 ($501,000) ($1,502,000)
2017 ($553,000) ($1,660,000)
2018 ($560,000) ($1,681,000)
2019 ($569,000) ($1,707,000)
2020 ($578,000) ($1,734,000)

Fiscal Analysis

The bill would amend Chapter 162 of the Tax Code, regarding motor fuel taxes.
 
The bill would exempt certain ambulances specified in the bill from the motor fuel taxes imposed under Subchapters B (gasoline) and C (diesel fuel).  Gasoline and diesel fuel would be exempt if the fuel was sold to an entity that uses the fuel exclusively for an ambulance operated by a person who has been issued a license by the Department of State Health Services; and has an agreement with a local governmental entity to provide emergency ambulance services.
 
The bill would allow a licensed supplier or distributor to take a credit on a return if it paid tax on the purchase of gasoline or diesel fuel subsequently resold to an exempted ambulance providing entity without collecting the tax, and an exempted ambulance providing entity could file a refund claim with the Comptroller if it paid tax on a fuel purchase.
 
The bill would take effect September 1, 2015.

Methodology

Under current law, gasoline and diesel fuel are taxed at the rate of $0.20 per gallon.  The bill would exempt the specified ambulance providing entities from paying this tax.
 
This estimate is based on data from the American Ambulance Association, the Texas Ambulance Association, and the Texas Department of State Health Services.  The gallons of gasoline and diesel fuel that would be exempted per year were subjected to their motor fuel tax rate to arrive at an annual revenue loss.  The annual revenue loss was trended forward over the five-year projection period.  The first year's revenue loss was adjusted to allow for the statutory lag in motor fuel tax remittances.

Local Government Impact

No significant fiscal implication to units of local government is anticipated.


Source Agencies:
304 Comptroller of Public Accounts
LBB Staff:
UP, KK, SD, AG