Honorable Tom Craddick, Chair, House Committee on Transportation
FROM:
Jerry McGinty, Director, Legislative Budget Board
IN RE:
HB4472 by Virdell (Relating to the registration fee for certain trailers, travel trailers, and semitrailers.), As Introduced
Estimated Two-year Net Impact to General Revenue Related Funds for HB4472, As Introduced: an impact of $0 through the biennium ending August 31, 2027.
The bill would make no appropriation but could provide the legal basis for an appropriation of funds to implement the provisions of the bill.
General Revenue-Related Funds, Five- Year Impact:
Fiscal Year
Probable Net Positive/(Negative) Impact to General Revenue Related Funds
2026
$0
2027
$0
2028
$0
2029
$0
2030
$0
All Funds, Five-Year Impact:
Fiscal Year
Probable Revenue Gain/(Loss) from State Highway Fund 6
Probable Revenue Gain/(Loss) from Counties
2026
($24,455,850)
($1,287,150)
2027
($24,700,000)
($1,300,000)
2028
($24,947,000)
($1,313,000)
2029
($25,196,850)
($1,326,150)
2030
($25,448,600)
($1,339,400)
Fiscal Analysis
The bill would reduce the fee for a registration year for certain trailers, travel trailers, or semitrailers from $45.00 to $20.00. The bill would take effect on September 1, 2025.
Methodology
Based on the analysis provided by the Texas Department of Motor Vehicles (TxDMV) and the Comptroller's office, the proposed reduction of the registration fee would result in a revenue loss of $25.7 million in fiscal year 2026 with losses increasing by 1.0 percent each fiscal year thereafter. TxDMV estimates that approximately 5.0 percent of registration fees collected by the county tax assessor-collectors is retained by the counties and the remainder is deposited to State Highway Fund No. 0006. The resulting impact to Fund No. 0006 and the counties is shown in the table above.
Local Government Impact
The bill would result in a revenue loss to counties as estimated in the table above.
Source Agencies:
304 Comptroller of Public Accounts, 608 Department of Motor Vehicles