LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 81ST LEGISLATIVE REGULAR SESSION May 19, 2009 TO: Honorable Joseph Pickett, Chair, House Committee on Transportation FROM: John S. O'Brien, Director, Legislative Budget Board IN RE:SB1759 by Watson (Relating to the extended registration of a commercial fleet of motor vehicles.), As Engrossed Estimated Two-year Net Impact to General Revenue Related Funds for SB1759, As Engrossed: an impact of $0 through the biennium ending August 31, 2011. The bill would make no appropriation but could provide the legal basis for an appropriation of funds to implement the provisions of the bill.
LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 81ST LEGISLATIVE REGULAR SESSION
May 19, 2009
TO: Honorable Joseph Pickett, Chair, House Committee on Transportation FROM: John S. O'Brien, Director, Legislative Budget Board IN RE:SB1759 by Watson (Relating to the extended registration of a commercial fleet of motor vehicles.), As Engrossed
TO: Honorable Joseph Pickett, Chair, House Committee on Transportation
FROM: John S. O'Brien, Director, Legislative Budget Board
IN RE: SB1759 by Watson (Relating to the extended registration of a commercial fleet of motor vehicles.), As Engrossed
Honorable Joseph Pickett, Chair, House Committee on Transportation
Honorable Joseph Pickett, Chair, House Committee on Transportation
John S. O'Brien, Director, Legislative Budget Board
John S. O'Brien, Director, Legislative Budget Board
SB1759 by Watson (Relating to the extended registration of a commercial fleet of motor vehicles.), As Engrossed
SB1759 by Watson (Relating to the extended registration of a commercial fleet of motor vehicles.), As Engrossed
Estimated Two-year Net Impact to General Revenue Related Funds for SB1759, As Engrossed: an impact of $0 through the biennium ending August 31, 2011. The bill would make no appropriation but could provide the legal basis for an appropriation of funds to implement the provisions of the bill.
Estimated Two-year Net Impact to General Revenue Related Funds for SB1759, As Engrossed: an impact of $0 through the biennium ending August 31, 2011.
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 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 Gain/(Loss) fromState Highway Fund6 Probable Revenue Gain/(Loss) fromCounties 2010 $68,100,000 $30,550,000 2011 $82,376,250 $34,989,688 2012 ($3,311,250) ($5,465,625) 2013 ($4,818,750) ($6,480,938) 2014 ($6,326,250) ($7,496,250)
Fiscal Year Probable Revenue Gain/(Loss) fromState Highway Fund6 Probable Revenue Gain/(Loss) fromCounties 2010 $68,100,000 $30,550,000 2011 $82,376,250 $34,989,688 2012 ($3,311,250) ($5,465,625) 2013 ($4,818,750) ($6,480,938) 2014 ($6,326,250) ($7,496,250)
2010 $68,100,000 $30,550,000
2011 $82,376,250 $34,989,688
2012 ($3,311,250) ($5,465,625)
2013 ($4,818,750) ($6,480,938)
2014 ($6,326,250) ($7,496,250)
Fiscal Analysis
The bill would amend the Transportation Code to require the Texas Department of Transportation (TxDOT) to develop and implement a system to allow an owner of a commercial fleet of vehicles consisting of at least 25 nonapportioned vehicles used for business purposes to register vehicles in the commercial fleet for an extended registration period of no less than one year and no greater than eight years. The bill would require an annual fleet registration fee of $10 per fleet vehicle, a one-time license plate manufacturing fee of $1.50 for each fleet vehicle license plate, and the advance payment of all registration license taxes and fees for the entire registration period. The bill would take effect January 1, 2010.
The bill would amend the Transportation Code to require the Texas Department of Transportation (TxDOT) to develop and implement a system to allow an owner of a commercial fleet of vehicles consisting of at least 25 nonapportioned vehicles used for business purposes to register vehicles in the commercial fleet for an extended registration period of no less than one year and no greater than eight years. The bill would require an annual fleet registration fee of $10 per fleet vehicle, a one-time license plate manufacturing fee of $1.50 for each fleet vehicle license plate, and the advance payment of all registration license taxes and fees for the entire registration period.
The bill would take effect January 1, 2010.
Methodology
TxDOT estimates there are approximately 400,000 fleet vehicles in Texas and that approximately 37,500 fleet vehicles would be added each fiscal year. Based on the analysis of TxDOT, it is assumed half of the current fleet vehicles (200,000) would apply for an eight-year fleet registration in fiscal year (FY) 2010, the remaining half would apply for a eight-year fleet registration in FY 2011, and an additional 37,500 would apply in FY 2011 and each year thereafter. All applicable fees would be paid in advance for the 10-year period. For the purposes of this analysis, it is assumed 67 percent of the registration fees would be deposited to the State Highway Fund and 33 percent would be retained by the counties. The tables above also reflect the impact of the $10/$5 optional county road and bridge fee, of which 97 percent is deposited to county road and bridge funds and 3 percent to the State Highway Fund. It is assumed half of the fleet vehicles would be registered in counties assessing the $10 optional fee and the remainder would be registered in counties assessing a $5 optional fee. Based on current law, the new $10 fleet management fee and one-time $1.50 plate manufacturing fee would be deposited to the State Highway Fund. The advance payment of all applicable fees would result in a revenue gain in the initial year of the fleet registration and a revenue loss in subsequent years as the fleet vehicles would not be required to pay annual fees until the term of the fleet registration has expired. Based on the analysis of TxDOT, it is assumed any costs or duties associated with implementing the provisions of the bill could be absorbed within existing resources.
TxDOT estimates there are approximately 400,000 fleet vehicles in Texas and that approximately 37,500 fleet vehicles would be added each fiscal year. Based on the analysis of TxDOT, it is assumed half of the current fleet vehicles (200,000) would apply for an eight-year fleet registration in fiscal year (FY) 2010, the remaining half would apply for a eight-year fleet registration in FY 2011, and an additional 37,500 would apply in FY 2011 and each year thereafter. All applicable fees would be paid in advance for the 10-year period. For the purposes of this analysis, it is assumed 67 percent of the registration fees would be deposited to the State Highway Fund and 33 percent would be retained by the counties. The tables above also reflect the impact of the $10/$5 optional county road and bridge fee, of which 97 percent is deposited to county road and bridge funds and 3 percent to the State Highway Fund. It is assumed half of the fleet vehicles would be registered in counties assessing the $10 optional fee and the remainder would be registered in counties assessing a $5 optional fee. Based on current law, the new $10 fleet management fee and one-time $1.50 plate manufacturing fee would be deposited to the State Highway Fund. The advance payment of all applicable fees would result in a revenue gain in the initial year of the fleet registration and a revenue loss in subsequent years as the fleet vehicles would not be required to pay annual fees until the term of the fleet registration has expired.
Based on the analysis of TxDOT, it is assumed any costs or duties associated with implementing the provisions of the bill could be absorbed within existing resources.
Local Government Impact
The fiscal impact to units local government is reflected in the table above.
Source Agencies: 601 Department of Transportation, 304 Comptroller of Public Accounts
601 Department of Transportation, 304 Comptroller of Public Accounts
LBB Staff: JOB, KJG, MW, TG
JOB, KJG, MW, TG