LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 81ST LEGISLATIVE REGULAR SESSION April 5, 2009 TO: Honorable Rene Oliveira, Chair, House Committee on Ways & Means FROM: John S. O'Brien, Director, Legislative Budget Board IN RE:HB754 by Gonzalez Toureilles (Relating to an exemption from the tax imposed on the rental of a motor vehicle under certain circumstances.), As Introduced Estimated Two-year Net Impact to General Revenue Related Funds for HB754, As Introduced: a negative impact of ($55,419,000) through the biennium ending August 31, 2011.
LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 81ST LEGISLATIVE REGULAR SESSION
April 5, 2009
TO: Honorable Rene Oliveira, Chair, House Committee on Ways & Means FROM: John S. O'Brien, Director, Legislative Budget Board IN RE:HB754 by Gonzalez Toureilles (Relating to an exemption from the tax imposed on the rental of a motor vehicle under certain circumstances.), As Introduced
TO: Honorable Rene Oliveira, Chair, House Committee on Ways & Means
FROM: John S. O'Brien, Director, Legislative Budget Board
IN RE: HB754 by Gonzalez Toureilles (Relating to an exemption from the tax imposed on the rental of a motor vehicle under certain circumstances.), 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
HB754 by Gonzalez Toureilles (Relating to an exemption from the tax imposed on the rental of a motor vehicle under certain circumstances.), As Introduced
HB754 by Gonzalez Toureilles (Relating to an exemption from the tax imposed on the rental of a motor vehicle under certain circumstances.), As Introduced
Estimated Two-year Net Impact to General Revenue Related Funds for HB754, As Introduced: a negative impact of ($55,419,000) through the biennium ending August 31, 2011.
Estimated Two-year Net Impact to General Revenue Related Funds for HB754, As Introduced: a negative impact of ($55,419,000) 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 ($27,180,000) 2011 ($28,239,000) 2012 ($29,314,000) 2013 ($30,433,000) 2014 ($31,596,000)
2010 ($27,180,000)
2011 ($28,239,000)
2012 ($29,314,000)
2013 ($30,433,000)
2014 ($31,596,000)
All Funds, Five-Year Impact: Fiscal Year Probable Revenue (Loss) fromGeneral Revenue Fund1 2010 ($27,180,000) 2011 ($28,239,000) 2012 ($29,314,000) 2013 ($30,433,000) 2014 ($31,596,000)
Fiscal Year Probable Revenue (Loss) fromGeneral Revenue Fund1 2010 ($27,180,000) 2011 ($28,239,000) 2012 ($29,314,000) 2013 ($30,433,000) 2014 ($31,596,000)
2010 ($27,180,000)
2011 ($28,239,000)
2012 ($29,314,000)
2013 ($30,433,000)
2014 ($31,596,000)
Fiscal Analysis
The bill would amend Chapter 152 of the Tax Code, relating to an exemption from motor vehicle taxes imposed on gross rental receipts. The bill would create a new exemption from the tax on gross rental receipts for the rental of a motor vehicle by a person whose motor vehicle was unavailable due to theft or accident. The tax that would have been remitted on gross rental receipts without the exemption would be considered to have been remitted for purposes of collecting the minimum gross rental receipts tax. The Comptroller would adopt necessary rules regarding the exemption, including rules specifying any recordkeeping requirements. The bill would take effect September 1, 2009.
The bill would amend Chapter 152 of the Tax Code, relating to an exemption from motor vehicle taxes imposed on gross rental receipts.
The bill would create a new exemption from the tax on gross rental receipts for the rental of a motor vehicle by a person whose motor vehicle was unavailable due to theft or accident. The tax that would have been remitted on gross rental receipts without the exemption would be considered to have been remitted for purposes of collecting the minimum gross rental receipts tax.
The Comptroller would adopt necessary rules regarding the exemption, including rules specifying any recordkeeping requirements.
The bill would take effect September 1, 2009.
Methodology
Based on a United States Securities and Exchange Commission, Form 10-K, filing for a major company in the motor vehicle rental industry, it was assumed for the purposes of this analysis that approximately 13.5 percent of motor vehicle rental revenues are associated with temporary replacement purposes such as repairing a primary vehicle or a theft loss. The fiscal impact is based on motor vehicle rental tax as reported in the 2010/2011 Biennial Revenue Estimate.
Local Government Impact
Some local governments are authorized to impose a short-term motor vehicle sales and use tax to support sports and community venues. Because exemptions from the local tax mirror the state imposed exemptions, any impact at the state level would also be felt at the local level. This effect cannot be determined.
Some local governments are authorized to impose a short-term motor vehicle sales and use tax to support sports and community venues. Because exemptions from the local tax mirror the state imposed exemptions, any impact at the state level would also be felt at the local level. This effect cannot be determined.
Source Agencies: 304 Comptroller of Public Accounts
304 Comptroller of Public Accounts
LBB Staff: JOB, MN, SD, KK
JOB, MN, SD, KK