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:HB411 by Isett (Relating to motor vehicle sales and use taxes.), As Introduced The bill will have a direct impact of a revenue loss to the Property Tax Relief Fund of $25,274,000 for the 2010-11 biennium. Any loss to the Property Tax Relief Fund will have to be made up with General Revenue of the same amount to fund property tax relief.
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:HB411 by Isett (Relating to motor vehicle sales and use taxes.), As Introduced
TO: Honorable Rene Oliveira, Chair, House Committee on Ways & Means
FROM: John S. O'Brien, Director, Legislative Budget Board
IN RE: HB411 by Isett (Relating to motor vehicle sales and use taxes.), 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
HB411 by Isett (Relating to motor vehicle sales and use taxes.), As Introduced
HB411 by Isett (Relating to motor vehicle sales and use taxes.), As Introduced
The bill will have a direct impact of a revenue loss to the Property Tax Relief Fund of $25,274,000 for the 2010-11 biennium. Any loss to the Property Tax Relief Fund will have to be made up with General Revenue of the same amount to fund property tax relief.
The bill will have a direct impact of a revenue loss to the Property Tax Relief Fund of $25,274,000 for the 2010-11 biennium. Any loss to the Property Tax Relief Fund will have to be made up with General Revenue of the same amount to fund property tax relief.
The bill will have a direct impact of a revenue loss to the Property Tax Relief Fund of $25,274,000 for the 2010-11 biennium. Any loss to the Property Tax Relief Fund will have to be made up with General Revenue of the same amount to fund property tax relief.
General Revenue-Related Funds, Five-Year Impact: Fiscal Year Probable Net Positive/(Negative) Impact to General Revenue Related Funds 2010 $0 2011 $0 2012 $0 2013 $0 2014 $0
2010 $0
2011 $0
2012 $0
2013 $0
2014 $0
All Funds, Five-Year Impact: Fiscal Year Probable Revenue (Loss) fromProperty Tax Relief Fund304 Probable Revenue Gain fromState Highway Fund6 Probable Revenue (Loss) fromCounties 2010 ($12,323,000) $316,000 ($632,000) 2011 ($12,951,000) $267,000 ($668,000) 2012 ($13,391,000) $208,000 ($694,000) 2013 ($13,860,000) $145,000 ($722,000) 2014 ($14,345,000) $75,000 ($751,000)
Fiscal Year Probable Revenue (Loss) fromProperty Tax Relief Fund304 Probable Revenue Gain fromState Highway Fund6 Probable Revenue (Loss) fromCounties 2010 ($12,323,000) $316,000 ($632,000) 2011 ($12,951,000) $267,000 ($668,000) 2012 ($13,391,000) $208,000 ($694,000) 2013 ($13,860,000) $145,000 ($722,000) 2014 ($14,345,000) $75,000 ($751,000)
2010 ($12,323,000) $316,000 ($632,000)
2011 ($12,951,000) $267,000 ($668,000)
2012 ($13,391,000) $208,000 ($694,000)
2013 ($13,860,000) $145,000 ($722,000)
2014 ($14,345,000) $75,000 ($751,000)
Fiscal Analysis
The bill would amend the Chapter 152 of the Tax Code as it relates to the computation of motor vehicle sales and use taxes. The bill would repeal the standard presumptive value method of calculating motor vehicle sales and use tax due on the sale of a motor vehicle in a private-party transaction. The section of the law dedicating the motor vehicle sales and use taxes collected in these transactions to the Property Tax Relief Fund 0304 would also be repealed. The bill would take effect September 1, 2009.
The bill would amend the Chapter 152 of the Tax Code as it relates to the computation of motor vehicle sales and use taxes.
The bill would repeal the standard presumptive value method of calculating motor vehicle sales and use tax due on the sale of a motor vehicle in a private-party transaction. The section of the law dedicating the motor vehicle sales and use taxes collected in these transactions to the Property Tax Relief Fund 0304 would also be repealed.
The bill would take effect September 1, 2009.
Methodology
The estimated fiscal impacts are based on motor vehicle sales and use tax computed and collected using the presumptive value method, and then deposited to the Property Tax Relief Fund as shown in the 2010-11 Biennial Revenue Estimate. The impact on counties reflect the loss of the 5 percent commission associated with motor vehicle sales tax receipts related to presumptive value. A portion of the county commission comes from State Highway Fund, therefore commissions not paid to the counties would be a gain to that fund. The declining gain to the State Highway Fund is due to the declining percentage of the commission paid out of that fund, as required under current law.
Local Government Impact
The impact on counties reflect the loss of the 5 percent commission associated with motor vehicle sales tax receipts related to presumptive value.
Source Agencies: 304 Comptroller of Public Accounts, 601 Department of Transportation
304 Comptroller of Public Accounts, 601 Department of Transportation
LBB Staff: JOB, MN, SD, KK
JOB, MN, SD, KK