LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 83RD LEGISLATIVE REGULAR SESSION May 8, 2013 TO: Honorable Tommy Williams, Chair, Senate Committee on Finance FROM: Ursula Parks, Director, Legislative Budget Board IN RE:SB1648 by Williams (relating to the motor fuel tax on compressed natural gas and liquefied natural gas; providing penalties.), Committee Report 1st House, Substituted Estimated Two-year Net Impact to General Revenue Related Funds for SB1648, Committee Report 1st House, Substituted: a negative impact of ($141,000) through the biennium ending August 31, 2015. 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, 83RD LEGISLATIVE REGULAR SESSION
May 8, 2013
TO: Honorable Tommy Williams, Chair, Senate Committee on Finance FROM: Ursula Parks, Director, Legislative Budget Board IN RE:SB1648 by Williams (relating to the motor fuel tax on compressed natural gas and liquefied natural gas; providing penalties.), Committee Report 1st House, Substituted
TO: Honorable Tommy Williams, Chair, Senate Committee on Finance
FROM: Ursula Parks, Director, Legislative Budget Board
IN RE: SB1648 by Williams (relating to the motor fuel tax on compressed natural gas and liquefied natural gas; providing penalties.), Committee Report 1st House, Substituted
Honorable Tommy Williams, Chair, Senate Committee on Finance
Honorable Tommy Williams, Chair, Senate Committee on Finance
Ursula Parks, Director, Legislative Budget Board
Ursula Parks, Director, Legislative Budget Board
SB1648 by Williams (relating to the motor fuel tax on compressed natural gas and liquefied natural gas; providing penalties.), Committee Report 1st House, Substituted
SB1648 by Williams (relating to the motor fuel tax on compressed natural gas and liquefied natural gas; providing penalties.), Committee Report 1st House, Substituted
Estimated Two-year Net Impact to General Revenue Related Funds for SB1648, Committee Report 1st House, Substituted: a negative impact of ($141,000) through the biennium ending August 31, 2015. 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 SB1648, Committee Report 1st House, Substituted: a negative impact of ($141,000) through the biennium ending August 31, 2015.
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 2014 ($70,000) 2015 ($71,000) 2016 ($71,000) 2017 ($71,000) 2018 ($72,000)
2014 ($70,000)
2015 ($71,000)
2016 ($71,000)
2017 ($71,000)
2018 ($72,000)
All Funds, Five-Year Impact: Fiscal Year Probable Revenue Gain/(Loss) fromAvailable School Fund2 Probable Revenue Gain/(Loss) fromState Highway Fund6 2014 ($70,000) ($211,000) 2015 ($71,000) ($212,000) 2016 ($71,000) ($213,000) 2017 ($71,000) ($214,000) 2018 ($72,000) ($215,000)
Fiscal Year Probable Revenue Gain/(Loss) fromAvailable School Fund2 Probable Revenue Gain/(Loss) fromState Highway Fund6 2014 ($70,000) ($211,000) 2015 ($71,000) ($212,000) 2016 ($71,000) ($213,000) 2017 ($71,000) ($214,000) 2018 ($72,000) ($215,000)
2014 ($70,000) ($211,000)
2015 ($71,000) ($212,000)
2016 ($71,000) ($213,000)
2017 ($71,000) ($214,000)
2018 ($72,000) ($215,000)
Fiscal Analysis
The bill would amend Chapter 162 of the Tax Code, regarding motor fuel taxes, to add new Subchapter D-1 to change the way in which tax is paid and collected on both compressed natural gas (CNG) and liquefied natural gas (LNG) used as a motor fuel in motor vehicles. Under current law the tax is paid annually via a Liquefied Gas Tax decal which must be displayed on the windshield of the motor vehicle. The Liquefied Gas Tax decal, for both CNG and LNG, is based on a tax rate of 15 cents per gallon. The bill would leave the tax rate on both CNG and LNG unchanged at 15 cents per gallon, but would impose the tax upon the delivery of CNG or LNG into the fuel supply tank of a motor vehicle. The tax collected would be remitted monthly to the Comptroller by each licensed CNG and LNG dealer. The bill would provide an exception to the new Subchapter D-1 in that certain public transportation providers using CNG or LNG could choose to pay the liquefied gas tax under the existing provisions of Subchapter D, Chapter 162, Tax Code. The current tax exemptions allowed for CNG and LNG would be unchanged in the new subchapter. The bill would take effect September 1, 2013.
Methodology
When allowing taxpayers to make a choice among different tax liability calculation methods and tax rate combinations, the taxpayer will choose the option that provides the lowest tax liability. A calculation was made for the projected loss in tax revenue from these fuels due to the selection option for public transportation providers and the tax that would be remitted by other previous tax decal holders who would now pay under the new tax calculation methods in the bill.
Local Government Impact
No significant fiscal implication to units of local government is anticipated.
Source Agencies: 304 Comptroller of Public Accounts
304 Comptroller of Public Accounts
LBB Staff: UP, KK, SD, AG
UP, KK, SD, AG