Honorable Dennis Bonnen, Chair, House Committee on Ways & Means
FROM:
Ursula Parks, Director, Legislative Budget Board
IN RE:
HB3652 by Craddick (Relating to an exemption for open-enrollment charter schools from taxes imposed on the sale, lease, or rental of a motor vehicle and registration fees for motor vehicles.), As Introduced
There would be an indeterminate amount of state revenue loss depending on the number of motor vehicles purchased by and registered to open enrollment charter schools.
The bill would amend the Tax and Transportation Codes relating to an exemption for open-enrollment charter schools from taxes imposed on the sale, lease, or rental of a motor vehicle and registration fees for motor vehicles.
The bill would amend Section 152.001(7) of the Tax Code to add an open-enrollment charter school to the definition of public agency, thereby exempting open-enrollment charter schools from paying motor vehicle sales and use or rental taxes.
The bill would amend Section 502.453(a) of the Transportation Code to exempt open-enrollment charter schools from paying registration fees on a motor vehicle, trailer, or semitrailer.
According to the Texas Education Agency (TEA), and using TEA's definition of an open-enrollment charter school, there are currently 182 charter schools to which the provisions of the bill would apply. Under current law, vehicles operated by a commercial transportation company that has a contract with an open-enrollment charter school are exempt from motor vehicle sales and use tax. The Comptroller does not have data regarding the number of motor vehicles registered to open-enrollment charter schools, therefore the revenue loss cannot be estimated.
This bill would take effect immediately upon enactment, assuming it received the requisite two-thirds majority votes in both houses of the Legislature. Otherwise, it would take effect September 1, 2017.
Local Government Impact
No significant fiscal implication to units of local government is anticipated.