LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 81ST LEGISLATIVE REGULAR SESSION February 26, 2009 TO: Honorable Steve Ogden, Chair, Senate Committee on Finance FROM: John S. O'Brien, Director, Legislative Budget Board IN RE:SB254 by Estes (Relating to the exemption of volunteer fire departments from certain motor fuel taxes.), As Introduced Estimated Two-year Net Impact to General Revenue Related Funds for SB254, As Introduced: a negative impact of ($1,473,000) through the biennium ending August 31, 2011, if the effective date of the bill is July 1, 2009; or a negative impact of ($1,355,000) through the biennium ending August 31, 2011, if the effective date of the bill is September 1, 2009.
LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 81ST LEGISLATIVE REGULAR SESSION
February 26, 2009
TO: Honorable Steve Ogden, Chair, Senate Committee on Finance FROM: John S. O'Brien, Director, Legislative Budget Board IN RE:SB254 by Estes (Relating to the exemption of volunteer fire departments from certain motor fuel taxes.), As Introduced
TO: Honorable Steve Ogden, Chair, Senate Committee on Finance
FROM: John S. O'Brien, Director, Legislative Budget Board
IN RE: SB254 by Estes (Relating to the exemption of volunteer fire departments from certain motor fuel taxes.), As Introduced
Honorable Steve Ogden, Chair, Senate Committee on Finance
Honorable Steve Ogden, Chair, Senate Committee on Finance
John S. O'Brien, Director, Legislative Budget Board
John S. O'Brien, Director, Legislative Budget Board
SB254 by Estes (Relating to the exemption of volunteer fire departments from certain motor fuel taxes.), As Introduced
SB254 by Estes (Relating to the exemption of volunteer fire departments from certain motor fuel taxes.), As Introduced
Estimated Two-year Net Impact to General Revenue Related Funds for SB254, As Introduced: a negative impact of ($1,473,000) through the biennium ending August 31, 2011, if the effective date of the bill is July 1, 2009; or a negative impact of ($1,355,000) through the biennium ending August 31, 2011, if the effective date of the bill is September 1, 2009.
Estimated Two-year Net Impact to General Revenue Related Funds for SB254, As Introduced: a negative impact of ($1,473,000) through the biennium ending August 31, 2011, if the effective date of the bill is July 1, 2009; or a negative impact of ($1,355,000) through the biennium ending August 31, 2011, if the effective date of the bill is September 1, 2009.
General Revenue-Related Funds, Six-Year Impact: Fiscal Year Probable Net Positive/(Negative) Impact to General Revenue Related Funds 2009 ($59,000) 2010 ($706,000) 2011 ($708,000) 2012 ($710,000) 2013 ($713,000) 2014 ($715,000)
2009 ($59,000)
2010 ($706,000)
2011 ($708,000)
2012 ($710,000)
2013 ($713,000)
2014 ($715,000)
General Revenue-Related Funds, Five-Year Impact: Fiscal Year Probable Net Positive/(Negative) Impact to General Revenue Related Funds 2010 ($647,000) 2011 ($708,000) 2012 ($710,000) 2013 ($713,000) 2014 ($715,000)
2010 ($647,000)
2011 ($708,000)
2012 ($710,000)
2013 ($713,000)
2014 ($715,000)
All Funds, Six-Year Impact: Fiscal Year Probable Revenue (Loss) fromAvailable School Fund2 Probable Revenue (Loss) fromState Highway Fund6 2009 ($59,000) ($176,000) 2010 ($706,000) ($2,228,000) 2011 ($708,000) ($2,122,000) 2012 ($710,000) ($2,130,000) 2013 ($713,000) ($2,138,000) 2014 ($715,000) ($2,145,000) The above table assumes an effective date of July 1, 2009. The table below assumes an effective date of September 1, 2009. Fiscal Year Probable Revenue (Loss) fromAvailable School Fund2 Probable Revenue (Loss) fromState Highway Fund6 2010 ($647,000) ($1,941,000) 2011 ($708,000) ($2,122,000) 2012 ($710,000) ($2,130,000) 2013 ($713,000) ($2,138,000) 2014 ($715,000) ($2,145,000) Fiscal Analysis The bill would amend various sections of Chapter 162 of the Tax Code to exempt volunteer fire departments from the motor fuel taxes imposed under Subchapters B (gasoline) and C (diesel fuel). The bill would provide a tax exemption for gasoline and diesel fuel sold to a volunteer fire department in this state for its exclusive use. The bill would allow an eligible volunteer fire department, that had paid the motor fuel tax on the purchase of gasoline or diesel fuel, to file a claim with the Comptroller's Office for a refund of the tax. The bill would take effect on July 1, 2009, assuming that it received the requisite two-thirds majority votes in both houses of the Legislature. Otherwise, it would take effect September 1, 2009. Methodology This estimate is based upon analysis provide by the Comptroller's office. Under current law, gasoline and diesel fuel used by a volunteer fire department are each taxed at the rate of $0.20 per gallon. This estimate is based on a survey of motor fuel distributors selling gasoline and diesel fuel to Texas volunteer fire departments, and a survey by the Texas Forest Service regarding the number of volunteer fire departments in Texas and their vehicle miles traveled. Based on the survey data, an estimate of the average annual amount of motor fuel used by Texas volunteer fire departments was made, and the $0.20 per gallon motor fuel tax rate was applied to estimate the potential annual revenue losses. The revenue losses were trended forward over the five-year projection period. The first year's revenue losses were adjusted to allow for the statutory lag in motor fuel tax remittances. Local Government Impact No fiscal implication to units of local government is anticipated. Source Agencies:304 Comptroller of Public Accounts LBB Staff: JOB, MN, SD, KK
Fiscal Year Probable Revenue (Loss) fromAvailable School Fund2 Probable Revenue (Loss) fromState Highway Fund6 2009 ($59,000) ($176,000) 2010 ($706,000) ($2,228,000) 2011 ($708,000) ($2,122,000) 2012 ($710,000) ($2,130,000) 2013 ($713,000) ($2,138,000) 2014 ($715,000) ($2,145,000)
2009 ($59,000) ($176,000)
2010 ($706,000) ($2,228,000)
2011 ($708,000) ($2,122,000)
2012 ($710,000) ($2,130,000)
2013 ($713,000) ($2,138,000)
2014 ($715,000) ($2,145,000)
The above table assumes an effective date of July 1, 2009. The table below assumes an effective date of September 1, 2009.
Fiscal Year Probable Revenue (Loss) fromAvailable School Fund2 Probable Revenue (Loss) fromState Highway Fund6 2010 ($647,000) ($1,941,000) 2011 ($708,000) ($2,122,000) 2012 ($710,000) ($2,130,000) 2013 ($713,000) ($2,138,000) 2014 ($715,000) ($2,145,000) Fiscal Analysis The bill would amend various sections of Chapter 162 of the Tax Code to exempt volunteer fire departments from the motor fuel taxes imposed under Subchapters B (gasoline) and C (diesel fuel). The bill would provide a tax exemption for gasoline and diesel fuel sold to a volunteer fire department in this state for its exclusive use. The bill would allow an eligible volunteer fire department, that had paid the motor fuel tax on the purchase of gasoline or diesel fuel, to file a claim with the Comptroller's Office for a refund of the tax. The bill would take effect on July 1, 2009, assuming that it received the requisite two-thirds majority votes in both houses of the Legislature. Otherwise, it would take effect September 1, 2009. Methodology This estimate is based upon analysis provide by the Comptroller's office. Under current law, gasoline and diesel fuel used by a volunteer fire department are each taxed at the rate of $0.20 per gallon. This estimate is based on a survey of motor fuel distributors selling gasoline and diesel fuel to Texas volunteer fire departments, and a survey by the Texas Forest Service regarding the number of volunteer fire departments in Texas and their vehicle miles traveled. Based on the survey data, an estimate of the average annual amount of motor fuel used by Texas volunteer fire departments was made, and the $0.20 per gallon motor fuel tax rate was applied to estimate the potential annual revenue losses. The revenue losses were trended forward over the five-year projection period. The first year's revenue losses were adjusted to allow for the statutory lag in motor fuel tax remittances.
Fiscal Year Probable Revenue (Loss) fromAvailable School Fund2 Probable Revenue (Loss) fromState Highway Fund6 2010 ($647,000) ($1,941,000) 2011 ($708,000) ($2,122,000) 2012 ($710,000) ($2,130,000) 2013 ($713,000) ($2,138,000) 2014 ($715,000) ($2,145,000)
2010 ($647,000) ($1,941,000)
2011 ($708,000) ($2,122,000)
2012 ($710,000) ($2,130,000)
2013 ($713,000) ($2,138,000)
2014 ($715,000) ($2,145,000)
Fiscal Analysis
The bill would amend various sections of Chapter 162 of the Tax Code to exempt volunteer fire departments from the motor fuel taxes imposed under Subchapters B (gasoline) and C (diesel fuel). The bill would provide a tax exemption for gasoline and diesel fuel sold to a volunteer fire department in this state for its exclusive use. The bill would allow an eligible volunteer fire department, that had paid the motor fuel tax on the purchase of gasoline or diesel fuel, to file a claim with the Comptroller's Office for a refund of the tax. The bill would take effect on July 1, 2009, assuming that it received the requisite two-thirds majority votes in both houses of the Legislature. Otherwise, it would take effect September 1, 2009.
The bill would amend various sections of Chapter 162 of the Tax Code to exempt volunteer fire departments from the motor fuel taxes imposed under Subchapters B (gasoline) and C (diesel fuel).
The bill would provide a tax exemption for gasoline and diesel fuel sold to a volunteer fire department in this state for its exclusive use. The bill would allow an eligible volunteer fire department, that had paid the motor fuel tax on the purchase of gasoline or diesel fuel, to file a claim with the Comptroller's Office for a refund of the tax.
The bill would take effect on July 1, 2009, assuming that it received the requisite two-thirds majority votes in both houses of the Legislature. Otherwise, it would take effect September 1, 2009.
Methodology
This estimate is based upon analysis provide by the Comptroller's office. Under current law, gasoline and diesel fuel used by a volunteer fire department are each taxed at the rate of $0.20 per gallon. This estimate is based on a survey of motor fuel distributors selling gasoline and diesel fuel to Texas volunteer fire departments, and a survey by the Texas Forest Service regarding the number of volunteer fire departments in Texas and their vehicle miles traveled. Based on the survey data, an estimate of the average annual amount of motor fuel used by Texas volunteer fire departments was made, and the $0.20 per gallon motor fuel tax rate was applied to estimate the potential annual revenue losses. The revenue losses were trended forward over the five-year projection period. The first year's revenue losses were adjusted to allow for the statutory lag in motor fuel tax remittances.
This estimate is based upon analysis provide by the Comptroller's office.
Under current law, gasoline and diesel fuel used by a volunteer fire department are each taxed at the rate of $0.20 per gallon.
This estimate is based on a survey of motor fuel distributors selling gasoline and diesel fuel to Texas volunteer fire departments, and a survey by the Texas Forest Service regarding the number of volunteer fire departments in Texas and their vehicle miles traveled. Based on the survey data, an estimate of the average annual amount of motor fuel used by Texas volunteer fire departments was made, and the $0.20 per gallon motor fuel tax rate was applied to estimate the potential annual revenue losses. The revenue losses were trended forward over the five-year projection period. The first year's revenue losses were adjusted to allow for the statutory lag in motor fuel tax remittances.
Local Government Impact
No fiscal implication to units of local government is anticipated.
Source Agencies: 304 Comptroller of Public Accounts
304 Comptroller of Public Accounts
LBB Staff: JOB, MN, SD, KK
JOB, MN, SD, KK