LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 84TH LEGISLATIVE REGULAR SESSION April 8, 2015 TO: Honorable Joseph Pickett, Chair, House Committee on Transportation FROM: Ursula Parks, Director, Legislative Budget Board IN RE:HB373 by Simmons (Relating to the allocation of certain revenue from the taxes imposed on the sale, rental, or use of motor vehicles 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 HB373, As Introduced: a negative impact of ($2,520,434,000) through the biennium ending August 31, 2017.
LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 84TH LEGISLATIVE REGULAR SESSION
April 8, 2015
TO: Honorable Joseph Pickett, Chair, House Committee on Transportation FROM: Ursula Parks, Director, Legislative Budget Board IN RE:HB373 by Simmons (Relating to the allocation of certain revenue from the taxes imposed on the sale, rental, or use of motor vehicles 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: HB373 by Simmons (Relating to the allocation of certain revenue from the taxes imposed on the sale, rental, or use of motor vehicles 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
HB373 by Simmons (Relating to the allocation of certain revenue from the taxes imposed on the sale, rental, or use of motor vehicles to the state highway fund and to the uses of that revenue.), As Introduced
HB373 by Simmons (Relating to the allocation of certain revenue from the taxes imposed on the sale, rental, or use of motor vehicles 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 HB373, As Introduced: a negative impact of ($2,520,434,000) through the biennium ending August 31, 2017.
Estimated Two-year Net Impact to General Revenue Related Funds for HB373, As Introduced: a negative impact of ($2,520,434,000) through the biennium ending August 31, 2017.
General Revenue-Related Funds, Six-Year Impact: Fiscal Year Probable Net Positive/(Negative) Impact to General Revenue Related Funds 2016 ($805,370,000) 2017 ($1,715,064,000) 2018 ($2,753,059,000) 2019 ($3,921,618,000) 2020 ($5,170,512,000) 2021 ($6,504,962,000)
2016 ($805,370,000)
2017 ($1,715,064,000)
2018 ($2,753,059,000)
2019 ($3,921,618,000)
2020 ($5,170,512,000)
2021 ($6,504,962,000)
All Funds, Six-Year Impact: Fiscal Year Probable Revenue (Loss) fromGeneral Revenue Fund1 Probable Revenue (Loss) fromState Highway Fund6 Probable Revenue (Loss) fromTexas Emissions Reduction Plan5071 2016 ($805,370,000) $820,844,000 ($15,474,000) 2017 ($1,715,064,000) $1,730,693,000 ($15,629,000) 2018 ($2,753,059,000) $2,768,845,000 ($15,786,000) 2019 ($3,921,618,000) $3,937,562,000 ($15,944,000) 2020 ($5,170,512,000) $5,170,512,000 $0 2021 ($6,504,962,000) $6,504,962,000 $0
Fiscal Year Probable Revenue (Loss) fromGeneral Revenue Fund1 Probable Revenue (Loss) fromState Highway Fund6 Probable Revenue (Loss) fromTexas Emissions Reduction Plan5071 2016 ($805,370,000) $820,844,000 ($15,474,000) 2017 ($1,715,064,000) $1,730,693,000 ($15,629,000) 2018 ($2,753,059,000) $2,768,845,000 ($15,786,000) 2019 ($3,921,618,000) $3,937,562,000 ($15,944,000) 2020 ($5,170,512,000) $5,170,512,000 $0 2021 ($6,504,962,000) $6,504,962,000 $0
2016 ($805,370,000) $820,844,000 ($15,474,000)
2017 ($1,715,064,000) $1,730,693,000 ($15,629,000)
2018 ($2,753,059,000) $2,768,845,000 ($15,786,000)
2019 ($3,921,618,000) $3,937,562,000 ($15,944,000)
2020 ($5,170,512,000) $5,170,512,000 $0
2021 ($6,504,962,000) $6,504,962,000 $0
Fiscal Analysis
The bill would amend Section 152.122 of the Tax Code, regarding the allocation of certain revenue from taxes imposed on the sale, rental, or use of motor vehicles to the State Highway Fund (SHF) and the uses of that revenue. The bill would deposit the taxes collected under this chapter related to motor vehicle sales, vehicles operated by nonresidents, gross rental receipts, and seller-financed sales to the credit of the SHF. Under current law net revenue collections from these taxes are deposited to the General Revenue (GR) Fund. The portion of the taxes that currently are deposited to Fund 5071 would also be deposited to SHF. The transition from depositing that tax revenue from GR to the SHF would be implemented over six years beginning in fiscal 2016, at which time the Comptroller would deposit one-sixth of the amounts collected under the affected revenues in the SHF. Each year the SHF allocation would increase by one-sixth until fiscal 2021 and thereafter when all of the affected revenue would be deposited to the SHF. The bill would stipulate any funds deposited to the SHF under this section may not be used for a toll road or toll road project, or a mass transit rail system. The bill would take effect September 1, 2015.
Methodology
The annual collections from the taxes in Chapter 152 that would be deposited to Fund 0001 were obtained from the amounts forecasted in the 2016-17 Biennial Revenue Estimate, reduced by amounts transferred to Fund 0304, and projected forward. The amount that would be deposited to the SHF (instead of GR) beginning in fiscal 2016 was then calculated by taking one-sixth of the amount forecasted to be deposited to GR from the affected taxes and extrapolated through the subsequent years until 100 percent would be deposited to the SHF.
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, AG, SD, KK
UP, AG, SD, KK