LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 84TH LEGISLATIVE REGULAR SESSION April 17, 2015 TO: Honorable Robert Nichols, Chair, Senate Committee on Transportation FROM: Ursula Parks, Director, Legislative Budget Board IN RE:SB840 by Watson (Relating to certain trailer registration fees for veterans with disabilities.), Committee Report 1st House, Substituted Estimated Two-year Net Impact to General Revenue Related Funds for SB840, Committee Report 1st House, Substituted: a positive impact of $36,812 through the biennium ending August 31, 2017.However, the bill would result in a revenue loss of ($985,331) for the biennium to Fund 6.
LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 84TH LEGISLATIVE REGULAR SESSION
April 17, 2015
TO: Honorable Robert Nichols, Chair, Senate Committee on Transportation FROM: Ursula Parks, Director, Legislative Budget Board IN RE:SB840 by Watson (Relating to certain trailer registration fees for veterans with disabilities.), Committee Report 1st House, Substituted
TO: Honorable Robert Nichols, Chair, Senate Committee on Transportation
FROM: Ursula Parks, Director, Legislative Budget Board
IN RE: SB840 by Watson (Relating to certain trailer registration fees for veterans with disabilities.), Committee Report 1st House, Substituted
Honorable Robert Nichols, Chair, Senate Committee on Transportation
Honorable Robert Nichols, Chair, Senate Committee on Transportation
Ursula Parks, Director, Legislative Budget Board
Ursula Parks, Director, Legislative Budget Board
SB840 by Watson (Relating to certain trailer registration fees for veterans with disabilities.), Committee Report 1st House, Substituted
SB840 by Watson (Relating to certain trailer registration fees for veterans with disabilities.), Committee Report 1st House, Substituted
Estimated Two-year Net Impact to General Revenue Related Funds for SB840, Committee Report 1st House, Substituted: a positive impact of $36,812 through the biennium ending August 31, 2017.However, the bill would result in a revenue loss of ($985,331) for the biennium to Fund 6.
Estimated Two-year Net Impact to General Revenue Related Funds for SB840, Committee Report 1st House, Substituted: a positive impact of $36,812 through the biennium ending August 31, 2017.However, the bill would result in a revenue loss of ($985,331) for the biennium to Fund 6.
General Revenue-Related Funds, Five-Year Impact: Fiscal Year Probable Net Positive/(Negative) Impact to General Revenue Related Funds 2016 $14,573 2017 $22,239 2018 $22,740 2019 $23,251 2020 $23,775
2016 $14,573
2017 $22,239
2018 $22,740
2019 $23,251
2020 $23,775
All Funds, Five-Year Impact: Fiscal Year Probable Revenue Gain/(Loss) fromGeneral Revenue Fund1 Probable Revenue Gain/(Loss) fromState Highway Fund6 Probable Revenue Gain/(Loss) fromCounties 2016 $14,573 ($390,057) ($149,125) 2017 $22,239 ($595,274) ($227,583) 2018 $22,740 ($608,668) ($232,704) 2019 $23,251 ($622,363) ($237,939) 2020 $23,775 ($636,366) ($243,293)
Fiscal Year Probable Revenue Gain/(Loss) fromGeneral Revenue Fund1 Probable Revenue Gain/(Loss) fromState Highway Fund6 Probable Revenue Gain/(Loss) fromCounties 2016 $14,573 ($390,057) ($149,125) 2017 $22,239 ($595,274) ($227,583) 2018 $22,740 ($608,668) ($232,704) 2019 $23,251 ($622,363) ($237,939) 2020 $23,775 ($636,366) ($243,293)
2016 $14,573 ($390,057) ($149,125)
2017 $22,239 ($595,274) ($227,583)
2018 $22,740 ($608,668) ($232,704)
2019 $23,251 ($622,363) ($237,939)
2020 $23,775 ($636,366) ($243,293)
Fiscal Analysis
The bill would amend the Transportation Code relating to trailer registration fees for veterans with disabilities.The bill would amend Section 502.202 of the Transportation Code to authorize a person entitled to receive a Disabled Veteran specialty license plate to register one trailer, travel trailer, or semitrailer with a gross weight of 6,000 pounds or less without payment of any fee paid for or at the time of registration except for the fee for the license plate. The fee for the license plate would be $3 each year.The bill would take effect September 1, 2016.
Methodology
According to the Department of Motor Vehicles (DMV), there were 144,227 vehicles registered with Disabled Veteran plates in 2014. During that same time, 10% of the 23.8 million registered vehicles in Texas were trailers. DMV estimated that 10% of these disabled veterans own trailers and would apply for a Disabled Veteran trailer plate. This percentage equals about 14,500 trailer owners statewide who would obtain a $3 Disabled Veteran plate in lieu of paying the standard trailer registration fee of $45. A 2.25% annual growth rate was then applied to the number of disabled veteran trailers registered annually. Revenue was adjusted in the first year to account for the January 2016 effective date. Those who are eligible to obtain a Disabled Veteran plate do not pay any local county fees (estimated average is $10), the $1 Automation Fee, or the $1 TexasSure (insurance verification) fee at time of registration.
Local Government Impact
The fiscal impact to counties is shown in the above table.
Source Agencies: 608 Department of Motor Vehicles
608 Department of Motor Vehicles
LBB Staff: UP, AG, SD
UP, AG, SD