LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 87TH LEGISLATIVE REGULAR SESSION April 25, 2021 TO: Honorable Brooks Landgraf, Chair, House Committee on Environmental Regulation FROM: Jerry McGinty, Director, Legislative Budget Board IN RE: HB4472 by Landgraf (Relating to the Texas emissions reduction plan fund and account.), As Introduced No significant fiscal implication to the State is anticipated.A negative fiscal impact is anticipated to the Texas Emissions Reduction Plan Trust Fund outside the Treasury of $23,225,000 in fiscal year 2022 and $23,922,000 each subsequent fiscal year due to reduced surcharges. The bill would amend the Transportation Code to change deposit of remitted title fees from the Texas Mobility Fund (TMF) to the Texas Emission Reduction Plan Fund (TERP) and the bill would direct the Texas Department of Transportation to transfer an equal amount from the State Highway Fund (SHF) to the TMF.Under current law, beginning September 1, 2021, title fees are deposited to the TMF, and the TERP Fund located outside of the treasury is credited, through legislative appropriation, an equal amount from the SHF each month. This estimate assumes motor vehicle title fees would be deposited directly to the TERP fund outside the treasury and the transfer from the SHF to TMF would remain entirely within the treasury. Since the bill would just adjust transfers that are pre-existing, no significant fiscal impact to the state is anticipated.In addition, the bill would reduce the surcharge imposed on the retail sale, lease, or rental of certain new or used equipment from 1.5 to 1.0 percent of the sale price or the lease of the rental amount. Under current law, revenues from this surcharge would be deposited to the credit of the TERP Fund beginning September 1, 2021, due to the enactment of House Bill 3745, Eighty-sixth Legislature, Regular Session, 2019. Based on information provided by the Comptroller of Public Accounts, the Comptroller does not have projections for the fiscal impact that the reduction of the surcharge imposed under Section 151.0515 of the Tax Code would have on TERP revenues because those revenues would be deposited to the TERP Fund. Due to this account being held outside the Treasury beginning September 1, 2021, this bill's provisions would not have a significant fiscal impact to the state. The bill would have no net fiscal effect between the TMF, SHF, and TERP fund.Based on the analysis of TCEQ, the surcharge reduction would result in an estimated revenue decrease of $23,225,000 in fiscal year 2022 and $23,922,000 in each subsequent fiscal year to the TERP Trust Fund.For informational purposes, the Comptroller's Biennial Revenue Estimate anticipates that title fees will generate $154,946,000 in FY 2022 and $157,270,000 in FY 2023. Local Government ImpactNo significant fiscal implication to units of local government is anticipated. Source Agencies: b > td > 304 Comptroller of Public Accounts, 582 Commission on Environmental Quality, 601 Department of Transportation LBB Staff: b > td > JMc, AJL, MW, GDZ
LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 87TH LEGISLATIVE REGULAR SESSION
April 25, 2021
TO: Honorable Brooks Landgraf, Chair, House Committee on Environmental Regulation FROM: Jerry McGinty, Director, Legislative Budget Board IN RE: HB4472 by Landgraf (Relating to the Texas emissions reduction plan fund and account.), As Introduced
TO: Honorable Brooks Landgraf, Chair, House Committee on Environmental Regulation
FROM: Jerry McGinty, Director, Legislative Budget Board
IN RE: HB4472 by Landgraf (Relating to the Texas emissions reduction plan fund and account.), As Introduced
Honorable Brooks Landgraf, Chair, House Committee on Environmental Regulation
Honorable Brooks Landgraf, Chair, House Committee on Environmental Regulation
Jerry McGinty, Director, Legislative Budget Board
Jerry McGinty, Director, Legislative Budget Board
HB4472 by Landgraf (Relating to the Texas emissions reduction plan fund and account.), As Introduced
HB4472 by Landgraf (Relating to the Texas emissions reduction plan fund and account.), As Introduced
No significant fiscal implication to the State is anticipated.A negative fiscal impact is anticipated to the Texas Emissions Reduction Plan Trust Fund outside the Treasury of $23,225,000 in fiscal year 2022 and $23,922,000 each subsequent fiscal year due to reduced surcharges.
No significant fiscal implication to the State is anticipated.A negative fiscal impact is anticipated to the Texas Emissions Reduction Plan Trust Fund outside the Treasury of $23,225,000 in fiscal year 2022 and $23,922,000 each subsequent fiscal year due to reduced surcharges.
A negative fiscal impact is anticipated to the Texas Emissions Reduction Plan Trust Fund outside the Treasury of $23,225,000 in fiscal year 2022 and $23,922,000 each subsequent fiscal year due to reduced surcharges.
The bill would amend the Transportation Code to change deposit of remitted title fees from the Texas Mobility Fund (TMF) to the Texas Emission Reduction Plan Fund (TERP) and the bill would direct the Texas Department of Transportation to transfer an equal amount from the State Highway Fund (SHF) to the TMF.Under current law, beginning September 1, 2021, title fees are deposited to the TMF, and the TERP Fund located outside of the treasury is credited, through legislative appropriation, an equal amount from the SHF each month. This estimate assumes motor vehicle title fees would be deposited directly to the TERP fund outside the treasury and the transfer from the SHF to TMF would remain entirely within the treasury. Since the bill would just adjust transfers that are pre-existing, no significant fiscal impact to the state is anticipated.In addition, the bill would reduce the surcharge imposed on the retail sale, lease, or rental of certain new or used equipment from 1.5 to 1.0 percent of the sale price or the lease of the rental amount. Under current law, revenues from this surcharge would be deposited to the credit of the TERP Fund beginning September 1, 2021, due to the enactment of House Bill 3745, Eighty-sixth Legislature, Regular Session, 2019. Based on information provided by the Comptroller of Public Accounts, the Comptroller does not have projections for the fiscal impact that the reduction of the surcharge imposed under Section 151.0515 of the Tax Code would have on TERP revenues because those revenues would be deposited to the TERP Fund. Due to this account being held outside the Treasury beginning September 1, 2021, this bill's provisions would not have a significant fiscal impact to the state. The bill would have no net fiscal effect between the TMF, SHF, and TERP fund.Based on the analysis of TCEQ, the surcharge reduction would result in an estimated revenue decrease of $23,225,000 in fiscal year 2022 and $23,922,000 in each subsequent fiscal year to the TERP Trust Fund.For informational purposes, the Comptroller's Biennial Revenue Estimate anticipates that title fees will generate $154,946,000 in FY 2022 and $157,270,000 in FY 2023.
Based on information provided by the Comptroller of Public Accounts, the Comptroller does not have projections for the fiscal impact that the reduction of the surcharge imposed under Section 151.0515 of the Tax Code would have on TERP revenues because those revenues would be deposited to the TERP Fund. Due to this account being held outside the Treasury beginning September 1, 2021, this bill's provisions would not have a significant fiscal impact to the state.
The bill would have no net fiscal effect between the TMF, SHF, and TERP fund.Based on the analysis of TCEQ, the surcharge reduction would result in an estimated revenue decrease of $23,225,000 in fiscal year 2022 and $23,922,000 in each subsequent fiscal year to the TERP Trust Fund.For informational purposes, the Comptroller's Biennial Revenue Estimate anticipates that title fees will generate $154,946,000 in FY 2022 and $157,270,000 in FY 2023.
Local Government Impact
No significant fiscal implication to units of local government is anticipated.
Source Agencies: b > td > 304 Comptroller of Public Accounts, 582 Commission on Environmental Quality, 601 Department of Transportation
304 Comptroller of Public Accounts, 582 Commission on Environmental Quality, 601 Department of Transportation
LBB Staff: b > td > JMc, AJL, MW, GDZ
JMc, AJL, MW, GDZ