LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 81ST LEGISLATIVE REGULAR SESSION March 16, 2009 TO: Honorable John Carona, Chair, Senate Committee on Transportation & Homeland Security FROM: John S. O'Brien, Director, Legislative Budget Board IN RE:SB294 by Hinojosa (Relating to optional fees on the registration of a vehicle imposed by a county.), As Introduced Estimated Two-year Net Impact to General Revenue Related Funds for SB294, As Introduced: 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
March 16, 2009
TO: Honorable John Carona, Chair, Senate Committee on Transportation & Homeland Security FROM: John S. O'Brien, Director, Legislative Budget Board IN RE:SB294 by Hinojosa (Relating to optional fees on the registration of a vehicle imposed by a county.), As Introduced
TO: Honorable John Carona, Chair, Senate Committee on Transportation & Homeland Security
FROM: John S. O'Brien, Director, Legislative Budget Board
IN RE: SB294 by Hinojosa (Relating to optional fees on the registration of a vehicle imposed by a county.), As Introduced
Honorable John Carona, Chair, Senate Committee on Transportation & Homeland Security
Honorable John Carona, Chair, Senate Committee on Transportation & Homeland Security
John S. O'Brien, Director, Legislative Budget Board
John S. O'Brien, Director, Legislative Budget Board
SB294 by Hinojosa (Relating to optional fees on the registration of a vehicle imposed by a county.), As Introduced
SB294 by Hinojosa (Relating to optional fees on the registration of a vehicle imposed by a county.), As Introduced
Estimated Two-year Net Impact to General Revenue Related Funds for SB294, As Introduced: 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 SB294, As Introduced: 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 fromState Highway Fund6 Probable Revenue Gain fromCounty Funds 2010 $3,304,304 $603,318,765 2011 $3,390,216 $619,005,055 2012 $3,478,362 $635,099,189 2013 $3,568,799 $651,611,771 2014 $3,661,588 $668,553,680
Fiscal Year Probable Revenue Gain fromState Highway Fund6 Probable Revenue Gain fromCounty Funds 2010 $3,304,304 $603,318,765 2011 $3,390,216 $619,005,055 2012 $3,478,362 $635,099,189 2013 $3,568,799 $651,611,771 2014 $3,661,588 $668,553,680
2010 $3,304,304 $603,318,765
2011 $3,390,216 $619,005,055
2012 $3,478,362 $635,099,189
2013 $3,568,799 $651,611,771
2014 $3,661,588 $668,553,680
Fiscal Analysis
The bill would amend the Transportation Code to increase from $10 to $15 the maximum amount of a fee to be deposited to the County Road and Bridge Fund that a county commissioners court may impose as an additional fee for registering a vehicle in the county. The bill would also authorize a county commissioners court of any county to impose an additional fee for registering a vehicle in the county to be used for transportation projects. The fee could not exceed $50. Under current statute, only certain counties may impose this additional fee and the maximum is $10. The total additional fees a county may impose could not exceed $65. The Texas Department of Transportation (TxDOT) would be required to send the fees collected to the county for deposit into a special account, whereas under current statute the department or the county sends the fees to the regional mobility authority of the county. The department would be required to designate the governmental entities that serve primarily a transportation function and with which counties may contract using the fees collected for transportation projects. The bill would take immediate effect upon receiving a two-thirds vote of all members elected to each house as provided by Section 39, Article 3, Texas Constitution. If the bill does not receive the vote necessary for immediate effect, the bill would take effect September 1, 2009.
The bill would amend the Transportation Code to increase from $10 to $15 the maximum amount of a fee to be deposited to the County Road and Bridge Fund that a county commissioners court may impose as an additional fee for registering a vehicle in the county.
The bill would also authorize a county commissioners court of any county to impose an additional fee for registering a vehicle in the county to be used for transportation projects. The fee could not exceed $50. Under current statute, only certain counties may impose this additional fee and the maximum is $10.
The total additional fees a county may impose could not exceed $65.
The Texas Department of Transportation (TxDOT) would be required to send the fees collected to the county for deposit into a special account, whereas under current statute the department or the county sends the fees to the regional mobility authority of the county. The department would be required to designate the governmental entities that serve primarily a transportation function and with which counties may contract using the fees collected for transportation projects.
The bill would take immediate effect upon receiving a two-thirds vote of all members elected to each house as provided by Section 39, Article 3, Texas Constitution. If the bill does not receive the vote necessary for immediate effect, the bill would take effect September 1, 2009.
Methodology
According to TxDOT 225 counties currently impose an option county road and bridge fee of $10; 16 counties currently impose a fee of $5; and the remaining 13 counties do not impose the optional fee. Based on the analysis of TxDOT, it is assumed that the participating counties would increase the optional fee by $5 beginning in fiscal year 2010 and the non-participating counties would continue to not impose the fee. Based on information provided by TxDOT, it is assumed the increased fee would be imposed on approximately 22 million vehicle registrations beginning in fiscal year 2010 for a total revenue gain of $110.1 million (97percent deposited to county road and bridge funds and 3 percent deposited to the State Highway Fund). It is assumed the number of vehicle registrations and corresponding revenues would increase by 2.6 percent each year. The bill would allow counties to impose an additional fee of up to $50 for registering a vehicle in the county, which would be deposited to a special account in the counties' general funds. For the purposes of this analysis, it is assumed 63 large counties (over 50,000 vehicle registrations per year) would impose an additional fee of $25; 46 medium-sized counties (25,000 - 50,000 vehicle registrations) would impose a fee of $10; and approximately half (73) of small counties (less than 25,000 vehicle registrations) would impose a fee of $5. Based on information provided by TxDOT, it is assumed that beginning in fiscal year 2010 the fees would be imposed on 19 million registrations in large counties, 1.7 million registrations in medium-sized counties, and 776,880 registrations in small counties for a total revenue gain to counties of $496.5 million in fiscal year 2010. It is assumed the number of vehicle registrations and corresponding revenues would increase by 2.6 percent each year.
According to TxDOT 225 counties currently impose an option county road and bridge fee of $10; 16 counties currently impose a fee of $5; and the remaining 13 counties do not impose the optional fee. Based on the analysis of TxDOT, it is assumed that the participating counties would increase the optional fee by $5 beginning in fiscal year 2010 and the non-participating counties would continue to not impose the fee. Based on information provided by TxDOT, it is assumed the increased fee would be imposed on approximately 22 million vehicle registrations beginning in fiscal year 2010 for a total revenue gain of $110.1 million (97percent deposited to county road and bridge funds and 3 percent deposited to the State Highway Fund). It is assumed the number of vehicle registrations and corresponding revenues would increase by 2.6 percent each year.
The bill would allow counties to impose an additional fee of up to $50 for registering a vehicle in the county, which would be deposited to a special account in the counties' general funds. For the purposes of this analysis, it is assumed 63 large counties (over 50,000 vehicle registrations per year) would impose an additional fee of $25; 46 medium-sized counties (25,000 - 50,000 vehicle registrations) would impose a fee of $10; and approximately half (73) of small counties (less than 25,000 vehicle registrations) would impose a fee of $5. Based on information provided by TxDOT, it is assumed that beginning in fiscal year 2010 the fees would be imposed on 19 million registrations in large counties, 1.7 million registrations in medium-sized counties, and 776,880 registrations in small counties for a total revenue gain to counties of $496.5 million in fiscal year 2010. It is assumed the number of vehicle registrations and corresponding revenues would increase by 2.6 percent each year.
Local Government Impact
The potential revenue gain to each county would vary depending on the number of vehicles registered. The total potential revenue gain to counties in the aggregate is shown in the tables above.
Source Agencies: 601 Department of Transportation
601 Department of Transportation
LBB Staff: JOB, KJG, MW, DB, TG
JOB, KJG, MW, DB, TG