LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 81ST LEGISLATIVE REGULAR SESSION May 11, 2009 TO: Honorable Joseph Pickett, Chair, House Committee on Transportation 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 Engrossed Estimated Two-year Net Impact to General Revenue Related Funds for SB294, 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 11, 2009
TO: Honorable Joseph Pickett, Chair, House Committee on Transportation 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 Engrossed
TO: Honorable Joseph Pickett, Chair, House Committee on Transportation
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 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
SB294 by Hinojosa (Relating to optional fees on the registration of a vehicle imposed by a county.), As Engrossed
SB294 by Hinojosa (Relating to optional fees on the registration of a vehicle imposed by a county.), As Engrossed
Estimated Two-year Net Impact to General Revenue Related Funds for SB294, 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 SB294, 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 fromState Highway Fund6 Probable Revenue Gain fromCounty Funds 2010 $3,304,304 $360,126,460 2011 $3,390,216 $369,489,753 2012 $3,478,362 $379,096,469 2013 $3,568,799 $388,952,986 2014 $3,661,588 $399,065,757
Fiscal Year Probable Revenue Gain fromState Highway Fund6 Probable Revenue Gain fromCounty Funds 2010 $3,304,304 $360,126,460 2011 $3,390,216 $369,489,753 2012 $3,478,362 $379,096,469 2013 $3,568,799 $388,952,986 2014 $3,661,588 $399,065,757
2010 $3,304,304 $360,126,460
2011 $3,390,216 $369,489,753
2012 $3,478,362 $379,096,469
2013 $3,568,799 $388,952,986
2014 $3,661,588 $399,065,757
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 certain counties to impose an additional fee for registering a vehicle in the county to be used for transportation projects or pledged by the county or a regional mobility authority of the county or other transportation governmental entity under contract with the county to secure the payment of bonds or other obligations associated with the development of long-term transportation projects. The fee could not exceed $50. Under current statute, only certain counties may impose this additional fee and the maximum is $10. Under the provisions of the bill, the fee imposed on a county with a population of at least 600,000 and that is located on the international border may not exceed $10. The total additional fees a county may impose could not exceed $65. The bill would require certain counties to hold an election and receive approval from the majority of votes cast in the election in order to impose the additional fee for registration of a vehicle within the counties.Except as otherwise provided by the bill, 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. Certain provisions of the bill would take effect only if Senate Bill 855 or similar legislation providing for or authorizing the imposition of a county, municipal, or other local vehicle registration fee for transportation or mobility projects is enacted.
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 certain counties to impose an additional fee for registering a vehicle in the county to be used for transportation projects or pledged by the county or a regional mobility authority of the county or other transportation governmental entity under contract with the county to secure the payment of bonds or other obligations associated with the development of long-term transportation projects. The fee could not exceed $50. Under current statute, only certain counties may impose this additional fee and the maximum is $10. Under the provisions of the bill, the fee imposed on a county with a population of at least 600,000 and that is located on the international border may not exceed $10. The total additional fees a county may impose could not exceed $65. The bill would require certain counties to hold an election and receive approval from the majority of votes cast in the election in order to impose the additional fee for registration of a vehicle within the counties.Except as otherwise provided by the bill, 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. Certain provisions of the bill would take effect only if Senate Bill 855 or similar legislation providing for or authorizing the imposition of a county, municipal, or other local vehicle registration fee for transportation or mobility projects is enacted.
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, with 97 percent 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. According to TxDOT, the bill would allow the counties of Bexar, Cameron, Dallas, Harris, Hays, Travis, and Webb 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 these counties would implement a fee of $25. Based on information provided by TxDOT, it is assumed that the fees would be imposed on 10.1 million registrations beginning in fiscal year 2010 for a total revenue gain to counties of $253.3 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 applicable county would vary depending on the number of vehicles registered. The total potential revenue gain to the applicable 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, TG, DB
JOB, KJG, MW, TG, DB