LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 87TH LEGISLATIVE REGULAR SESSION April 17, 2021 TO: Honorable Terry Canales, Chair, House Committee on Transportation FROM: Jerry McGinty, Director, Legislative Budget Board IN RE: HB427 by King, Ken (Relating to imposing an additional fee for the registration of electric and hybrid vehicles.), As Introduced Estimated Two-year Net Impact to General Revenue Related Funds for HB427, As Introduced : an impact of $0 through the biennium ending August 31, 2023.However, there would be an estimated revenue gain to Fund 6 of $145,438,000 during the 2022-23 biennium. General Revenue-Related Funds, Five- Year Impact: Fiscal Year Probable Net Positive/(Negative) Impact toGeneral Revenue Related Funds2022$02023$02024$02025$02026$0All Funds, Five-Year Impact: Fiscal Year Probable Revenue Gain/(Loss) fromState Highway Fund62022$60,002,0002023$85,436,0002024$119,668,0002025$160,452,0002026$205,726,000 Fiscal AnalysisThe bill would add Section 502.360 to the Transportation Code to impose an additional fee on electric and hybrid vehicles at the time of registration or renewal.An electric vehicle, as defined by the bill, would be subject to an additional $200 fee at the time of registration or renewal, and hybrid vehicles would subject to an additional fee of $100.The additional fees would be deposited to Fund 0006 - State Highway Fund.Note: This legislation would do one or more of the following: create or recreate a dedicated account in the General Revenue Fund, create or recreate a special or trust fund either in, with, or outside of the Treasury, or create a dedicated revenue source. The fund, account, or revenue dedication included in this bill would be subject to funds consolidation review by the current Legislature.The bill would take effect September 1, 2021.
LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 87TH LEGISLATIVE REGULAR SESSION
April 17, 2021
TO: Honorable Terry Canales, Chair, House Committee on Transportation FROM: Jerry McGinty, Director, Legislative Budget Board IN RE: HB427 by King, Ken (Relating to imposing an additional fee for the registration of electric and hybrid vehicles.), As Introduced
TO: Honorable Terry Canales, Chair, House Committee on Transportation
FROM: Jerry McGinty, Director, Legislative Budget Board
IN RE: HB427 by King, Ken (Relating to imposing an additional fee for the registration of electric and hybrid vehicles.), As Introduced
Honorable Terry Canales, Chair, House Committee on Transportation
Honorable Terry Canales, Chair, House Committee on Transportation
Jerry McGinty, Director, Legislative Budget Board
Jerry McGinty, Director, Legislative Budget Board
HB427 by King, Ken (Relating to imposing an additional fee for the registration of electric and hybrid vehicles.), As Introduced
HB427 by King, Ken (Relating to imposing an additional fee for the registration of electric and hybrid vehicles.), As Introduced
Estimated Two-year Net Impact to General Revenue Related Funds for HB427, As Introduced : an impact of $0 through the biennium ending August 31, 2023.However, there would be an estimated revenue gain to Fund 6 of $145,438,000 during the 2022-23 biennium.
Estimated Two-year Net Impact to General Revenue Related Funds for HB427, As Introduced : an impact of $0 through the biennium ending August 31, 2023.However, there would be an estimated revenue gain to Fund 6 of $145,438,000 during the 2022-23 biennium.
However, there would be an estimated revenue gain to Fund 6 of $145,438,000 during the 2022-23 biennium.
General Revenue-Related Funds, Five- Year Impact:
2022 $0
2023 $0
2024 $0
2025 $0
2026 $0
All Funds, Five-Year Impact:
2022 $60,002,000
2023 $85,436,000
2024 $119,668,000
2025 $160,452,000
2026 $205,726,000
Fiscal Analysis
The bill would add Section 502.360 to the Transportation Code to impose an additional fee on electric and hybrid vehicles at the time of registration or renewal.An electric vehicle, as defined by the bill, would be subject to an additional $200 fee at the time of registration or renewal, and hybrid vehicles would subject to an additional fee of $100.The additional fees would be deposited to Fund 0006 - State Highway Fund.Note: This legislation would do one or more of the following: create or recreate a dedicated account in the General Revenue Fund, create or recreate a special or trust fund either in, with, or outside of the Treasury, or create a dedicated revenue source. The fund, account, or revenue dedication included in this bill would be subject to funds consolidation review by the current Legislature.The bill would take effect September 1, 2021.
The bill would take effect September 1, 2021.
Methodology
Information from the DMV indicates the bill would initially apply to approximately 36,500 electric vehicles and 202,000 hybrid vehicles. The number of electric and hybrid vehicles that would pay the additional fee at registration was extrapolated using industry and market forecasts.
Local Government Impact
No fiscal implication to units of local government is anticipated.
Source Agencies: b > td > 304 Comptroller of Public Accounts
304 Comptroller of Public Accounts
LBB Staff: b > td > JMc, AAL, SD, BRI
JMc, AAL, SD, BRI