LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 84TH LEGISLATIVE REGULAR SESSION March 18, 2015 TO: Honorable Joseph Pickett, Chair, House Committee on Transportation FROM: Ursula Parks, Director, Legislative Budget Board IN RE:HB203 by Leach (Relating to the allocation of revenue derived from the taxes imposed on the sale, storage, or use of new and used motor vehicle tires and parts to the state highway fund and to the uses of that revenue.), As Introduced Estimated Two-year Net Impact to General Revenue Related Funds for HB203, As Introduced: a negative impact of ($1,733,100,000) through the biennium ending August 31, 2017.
LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 84TH LEGISLATIVE REGULAR SESSION
March 18, 2015
TO: Honorable Joseph Pickett, Chair, House Committee on Transportation FROM: Ursula Parks, Director, Legislative Budget Board IN RE:HB203 by Leach (Relating to the allocation of revenue derived from the taxes imposed on the sale, storage, or use of new and used motor vehicle tires and parts to the state highway fund and to the uses of that revenue.), As Introduced
TO: Honorable Joseph Pickett, Chair, House Committee on Transportation
FROM: Ursula Parks, Director, Legislative Budget Board
IN RE: HB203 by Leach (Relating to the allocation of revenue derived from the taxes imposed on the sale, storage, or use of new and used motor vehicle tires and parts to the state highway fund and to the uses of that revenue.), As Introduced
Honorable Joseph Pickett, Chair, House Committee on Transportation
Honorable Joseph Pickett, Chair, House Committee on Transportation
Ursula Parks, Director, Legislative Budget Board
Ursula Parks, Director, Legislative Budget Board
HB203 by Leach (Relating to the allocation of revenue derived from the taxes imposed on the sale, storage, or use of new and used motor vehicle tires and parts to the state highway fund and to the uses of that revenue.), As Introduced
HB203 by Leach (Relating to the allocation of revenue derived from the taxes imposed on the sale, storage, or use of new and used motor vehicle tires and parts to the state highway fund and to the uses of that revenue.), As Introduced
Estimated Two-year Net Impact to General Revenue Related Funds for HB203, As Introduced: a negative impact of ($1,733,100,000) through the biennium ending August 31, 2017.
Estimated Two-year Net Impact to General Revenue Related Funds for HB203, As Introduced: a negative impact of ($1,733,100,000) 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 ($845,400,000) 2017 ($887,700,000) 2018 ($932,100,000) 2019 ($978,700,000) 2020 ($1,027,600,000)
2016 ($845,400,000)
2017 ($887,700,000)
2018 ($932,100,000)
2019 ($978,700,000)
2020 ($1,027,600,000)
All Funds, Five-Year Impact: Fiscal Year Probable Revenue (Loss) fromGeneral Revenue Fund1 Probable Revenue Gain fromState Highway Fund6 2016 ($845,400,000) $845,400,000 2017 ($887,700,000) $887,700,000 2018 ($932,100,000) $932,100,000 2019 ($978,700,000) $978,700,000 2020 ($1,027,600,000) $1,027,600,000
Fiscal Year Probable Revenue (Loss) fromGeneral Revenue Fund1 Probable Revenue Gain fromState Highway Fund6 2016 ($845,400,000) $845,400,000 2017 ($887,700,000) $887,700,000 2018 ($932,100,000) $932,100,000 2019 ($978,700,000) $978,700,000 2020 ($1,027,600,000) $1,027,600,000
2016 ($845,400,000) $845,400,000
2017 ($887,700,000) $887,700,000
2018 ($932,100,000) $932,100,000
2019 ($978,700,000) $978,700,000
2020 ($1,027,600,000) $1,027,600,000
Fiscal Analysis
The bill would amend Chapter 151 of the Tax Code, regarding the state sales and use tax. The bill would amend Section 151.801 to require that the sales tax proceeds from the sale, storage, or use of new and used motor vehicle tires, and new and used motor vehicle parts, be deposited to the credit of the State Highway Fund rather than the General Revenue Fund. The bill would take effect September 1, 2015.
Methodology
Comptroller and Census data relating to auto parts, accessories, and tires were used to estimate the sales of such items. The amount of these sales was then multiplied by the tax rate to estimate the state sales tax thereon that would be dedicated to the state highway fund, and then extrapolated through fiscal 2020.
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, AG, SD, KK
UP, AG, SD, KK