Honorable Morgan Meyer, Chair, House Committee on Ways & Means
FROM:
Jerry McGinty, Director, Legislative Budget Board
IN RE:
HB4010 by Spiller (Relating to the filing of certain reports by distributors of certain off-highway vehicles purchased outside this state; providing civil penalties.), As Introduced
Estimated Two-year Net Impact to General Revenue Related Funds for HB4010, As Introduced : a positive impact of $300,000 through the biennium ending August 31, 2023.
General Revenue-Related Funds, Five- Year Impact:
Fiscal Year
Probable Net Positive/(Negative) Impact to General Revenue Related Funds
2022
$0
2023
$300,000
2024
$325,000
2025
$340,000
2026
$355,000
All Funds, Five-Year Impact:
Fiscal Year
Probable Revenue Gain from General Revenue Fund 1
2022
$0
2023
$300,000
2024
$325,000
2025
$340,000
2026
$355,000
Fiscal Analysis
The bill would amend the Tax Code to require a distributor of off-highway vehicles, as defined by the bill, to file a report with the Comptroller listing each warranty issued by the distributor for a new off-highway vehicle sold to a resident of Texas. A distributor who fails to file the required report would be subject to a civil penalty of not less than $25 and not more than $2,000 for each day a violation occurs.
The bill would take effect September 1, 2021.
Methodology
The Comptroller indicates that additional information required to be reported may help with identification by the comptroller of purchases on which use tax may be due and result in a marginal increase in tax collections, with the increase beginning in the year after the reports are first due.
Local Government Impact
No significant fiscal implication to units of local government is anticipated.
Source Agencies:
304 Comptroller of Public Accounts, 608 Department of Motor Vehicles