LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 84TH LEGISLATIVE REGULAR SESSION May 7, 2015 TO: Honorable Dennis Bonnen, Chair, House Committee on Ways & Means FROM: Ursula Parks, Director, Legislative Budget Board IN RE:HB1398 by Craddick (relating to the motor vehicle sales tax applicable to motor vehicles used by transportation companies for certain purposes.), Committee Report 1st House, Substituted Estimated Two-year Net Impact to General Revenue Related Funds for HB1398, Committee Report 1st House, Substituted: a negative impact of ($4,000,000) through the biennium ending August 31, 2017.
LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 84TH LEGISLATIVE REGULAR SESSION
May 7, 2015
TO: Honorable Dennis Bonnen, Chair, House Committee on Ways & Means FROM: Ursula Parks, Director, Legislative Budget Board IN RE:HB1398 by Craddick (relating to the motor vehicle sales tax applicable to motor vehicles used by transportation companies for certain purposes.), Committee Report 1st House, Substituted
TO: Honorable Dennis Bonnen, Chair, House Committee on Ways & Means
FROM: Ursula Parks, Director, Legislative Budget Board
IN RE: HB1398 by Craddick (relating to the motor vehicle sales tax applicable to motor vehicles used by transportation companies for certain purposes.), Committee Report 1st House, Substituted
Honorable Dennis Bonnen, Chair, House Committee on Ways & Means
Honorable Dennis Bonnen, Chair, House Committee on Ways & Means
Ursula Parks, Director, Legislative Budget Board
Ursula Parks, Director, Legislative Budget Board
HB1398 by Craddick (relating to the motor vehicle sales tax applicable to motor vehicles used by transportation companies for certain purposes.), Committee Report 1st House, Substituted
HB1398 by Craddick (relating to the motor vehicle sales tax applicable to motor vehicles used by transportation companies for certain purposes.), Committee Report 1st House, Substituted
Estimated Two-year Net Impact to General Revenue Related Funds for HB1398, Committee Report 1st House, Substituted: a negative impact of ($4,000,000) through the biennium ending August 31, 2017.
Estimated Two-year Net Impact to General Revenue Related Funds for HB1398, Committee Report 1st House, Substituted: a negative impact of ($4,000,000) through the biennium ending August 31, 2017.
General Revenue-Related Funds, Five-Year Impact: Fiscal Year Probable Net Positive/(Negative) Impact to General Revenue Related Funds 2016 ($2,000,000) 2017 ($2,000,000) 2018 ($2,000,000) 2019 ($2,000,000) 2020 ($2,000,000)
2016 ($2,000,000)
2017 ($2,000,000)
2018 ($2,000,000)
2019 ($2,000,000)
2020 ($2,000,000)
All Funds, Five-Year Impact: Fiscal Year Probable Revenue (Loss) fromGeneral Revenue Fund1 2016 ($2,000,000) 2017 ($2,000,000) 2018 ($2,000,000) 2019 ($2,000,000) 2020 ($2,000,000)
Fiscal Year Probable Revenue (Loss) fromGeneral Revenue Fund1 2016 ($2,000,000) 2017 ($2,000,000) 2018 ($2,000,000) 2019 ($2,000,000) 2020 ($2,000,000)
2016 ($2,000,000)
2017 ($2,000,000)
2018 ($2,000,000)
2019 ($2,000,000)
2020 ($2,000,000)
Fiscal Analysis
The bill would amend the Tax Code relating to the motor vehicle sales tax applicable to motor vehicles used by transportation companies for certain purposes. The bill would amend Section 152.082 to exempt vehicles operated by a commercial transportation services company under a contract with a board of county school trustees or school district board of trustees under Section 34.008 of the Education Code, or the governing body of an open-enrollment charter school, from paying the motor vehicle sales and use tax. Currently this exemption is only available to public agencies. The bill would take effect immediately upon enactment, assuming that it received the requisite two-thirds majority votes in both houses of the Legislature. Otherwise, it would take effect September 1, 2015.
Methodology
Average annual taxable purchases of $32 million for buses exempted by this bill were estimated from Comptroller audit records and Texas Education Agency (TEA) data on the number of school buses owned by private contractors.
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: UP, KK, SD
UP, KK, SD