LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 81ST LEGISLATIVE REGULAR SESSION April 19, 2009 TO: Honorable Rene Oliveira, Chair, House Committee on Ways & Means FROM: John S. O'Brien, Director, Legislative Budget Board IN RE:HB2654 by Oliveira (Relating to a joint statement relating to the transfer of a motor vehicle as the result of a gift.), As Introduced Estimated Two-year Net Impact to General Revenue Related Funds for HB2654, As Introduced: a positive impact of $2,000,000 through the biennium ending August 31, 2011.
LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 81ST LEGISLATIVE REGULAR SESSION
April 19, 2009
TO: Honorable Rene Oliveira, Chair, House Committee on Ways & Means FROM: John S. O'Brien, Director, Legislative Budget Board IN RE:HB2654 by Oliveira (Relating to a joint statement relating to the transfer of a motor vehicle as the result of a gift.), As Introduced
TO: Honorable Rene Oliveira, Chair, House Committee on Ways & Means
FROM: John S. O'Brien, Director, Legislative Budget Board
IN RE: HB2654 by Oliveira (Relating to a joint statement relating to the transfer of a motor vehicle as the result of a gift.), As Introduced
Honorable Rene Oliveira, Chair, House Committee on Ways & Means
Honorable Rene Oliveira, Chair, House Committee on Ways & Means
John S. O'Brien, Director, Legislative Budget Board
John S. O'Brien, Director, Legislative Budget Board
HB2654 by Oliveira (Relating to a joint statement relating to the transfer of a motor vehicle as the result of a gift.), As Introduced
HB2654 by Oliveira (Relating to a joint statement relating to the transfer of a motor vehicle as the result of a gift.), As Introduced
Estimated Two-year Net Impact to General Revenue Related Funds for HB2654, As Introduced: a positive impact of $2,000,000 through the biennium ending August 31, 2011.
Estimated Two-year Net Impact to General Revenue Related Funds for HB2654, As Introduced: a positive impact of $2,000,000 through the biennium ending August 31, 2011.
General Revenue-Related Funds, Five-Year Impact: Fiscal Year Probable Net Positive/(Negative) Impact to General Revenue Related Funds 2010 $1,000,000 2011 $1,000,000 2012 $1,000,000 2013 $1,000,000 2014 $1,000,000
2010 $1,000,000
2011 $1,000,000
2012 $1,000,000
2013 $1,000,000
2014 $1,000,000
All Funds, Five-Year Impact: Fiscal Year Probable Revenue Gain fromGeneral Revenue Fund1 2010 $1,000,000 2011 $1,000,000 2012 $1,000,000 2013 $1,000,000 2014 $1,000,000
Fiscal Year Probable Revenue Gain fromGeneral Revenue Fund1 2010 $1,000,000 2011 $1,000,000 2012 $1,000,000 2013 $1,000,000 2014 $1,000,000
2010 $1,000,000
2011 $1,000,000
2012 $1,000,000
2013 $1,000,000
2014 $1,000,000
Fiscal Analysis
This bill would amend the Tax Code to require that the joint statement for the transfer of a motor vehicle as the result of a gift, as required under current law, be notarized. The bill would take effect September 1, 2009.
This bill would amend the Tax Code to require that the joint statement for the transfer of a motor vehicle as the result of a gift, as required under current law, be notarized.
The bill would take effect September 1, 2009.
Methodology
Currently, a joint statement confirming the transfer of a motor vehicle as a result of a gift is required by law. Adding an additional requirement to notarize the joint statement is expected to reduce the number of transactions that are eligible for the $10 gift tax under current law and, therefore, would increase the tax due on those sales transactions. Persons engaging in eligible gift tax transactions would not be affected. There would also be a loss to the State Highway Fund due to the increased commission retained by counties. The commission is withheld from both General Revenue Funds and the State Highway Fund according to a sliding scale set in statute. The estimated loss to the State Highway Fund is approximately $46,000 for the biennium. Starting fiscal year 2015, the commission will be funded entirely from General Revenue Funds allowing motor vehicle registration fees to go to the credit of State Highway Fund.
Currently, a joint statement confirming the transfer of a motor vehicle as a result of a gift is required by law. Adding an additional requirement to notarize the joint statement is expected to reduce the number of transactions that are eligible for the $10 gift tax under current law and, therefore, would increase the tax due on those sales transactions. Persons engaging in eligible gift tax transactions would not be affected.
There would also be a loss to the State Highway Fund due to the increased commission retained by counties. The commission is withheld from both General Revenue Funds and the State Highway Fund according to a sliding scale set in statute. The estimated loss to the State Highway Fund is approximately $46,000 for the biennium. Starting fiscal year 2015, the commission will be funded entirely from General Revenue Funds allowing motor vehicle registration fees to go to the credit of State Highway Fund.
Local Government Impact
Counties receive a 5 percent commission for each motor vehicle sales tax transaction processed and remitted. The gain to counties is estimated to be $102,000 in the 2010-11 biennium.
Source Agencies: 304 Comptroller of Public Accounts
304 Comptroller of Public Accounts
LBB Staff: JOB, MN, SD, KK, KJG, YD
JOB, MN, SD, KK, KJG, YD