LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 88TH LEGISLATIVE REGULAR SESSION April 30, 2023 TO: Honorable Joan Huffman, Chair, Senate Committee on Finance FROM: Jerry McGinty, Director, Legislative Budget Board IN RE: SB1438 by Springer (Relating to a credit or refund for diesel fuel taxes paid on diesel fuel used in this state by auxiliary power units or power take-off equipment.), As Introduced Estimated Two-year Net Impact to General Revenue Related Funds for SB1438, As Introduced : a negative impact of ($4,716,000) through the biennium ending August 31, 2025. General Revenue-Related Funds, Five- Year Impact: Fiscal Year Probable Net Positive/(Negative) Impact toGeneral Revenue Related Funds2024($2,230,000)2025($2,486,000)2026($2,553,000)2027($2,624,000)2028($2,684,000)All Funds, Five-Year Impact: Fiscal Year Probable Revenue (Loss) fromAvailable School Fund2 Probable Revenue (Loss) fromState Highway Fund62024($2,230,000)($6,691,000)2025($2,486,000)($7,457,000)2026($2,553,000)($7,659,000)2027($2,624,000)($7,871,000)2028($2,684,000)($8,051,000) Fiscal AnalysisThe bill would amend Section 162.227, Tax Code, regarding credit or refund for diesel fuel taxes paid on diesel fuel used by auxiliary power units or power take-off equipment in Texas.The bill would add Subsection (d-1) to Section 162.227 to allow a credit or refund of diesel fuel tax paid on diesel fuel used for auxiliary power units or power take-off equipment on any motor vehicle.The bill would take effect September 1, 2023.
LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 88TH LEGISLATIVE REGULAR SESSION
April 30, 2023
TO: Honorable Joan Huffman, Chair, Senate Committee on Finance FROM: Jerry McGinty, Director, Legislative Budget Board IN RE: SB1438 by Springer (Relating to a credit or refund for diesel fuel taxes paid on diesel fuel used in this state by auxiliary power units or power take-off equipment.), As Introduced
TO: Honorable Joan Huffman, Chair, Senate Committee on Finance
FROM: Jerry McGinty, Director, Legislative Budget Board
IN RE: SB1438 by Springer (Relating to a credit or refund for diesel fuel taxes paid on diesel fuel used in this state by auxiliary power units or power take-off equipment.), As Introduced
Honorable Joan Huffman, Chair, Senate Committee on Finance
Honorable Joan Huffman, Chair, Senate Committee on Finance
Jerry McGinty, Director, Legislative Budget Board
Jerry McGinty, Director, Legislative Budget Board
SB1438 by Springer (Relating to a credit or refund for diesel fuel taxes paid on diesel fuel used in this state by auxiliary power units or power take-off equipment.), As Introduced
SB1438 by Springer (Relating to a credit or refund for diesel fuel taxes paid on diesel fuel used in this state by auxiliary power units or power take-off equipment.), As Introduced
Estimated Two-year Net Impact to General Revenue Related Funds for SB1438, As Introduced : a negative impact of ($4,716,000) through the biennium ending August 31, 2025.
Estimated Two-year Net Impact to General Revenue Related Funds for SB1438, As Introduced : a negative impact of ($4,716,000) through the biennium ending August 31, 2025.
General Revenue-Related Funds, Five- Year Impact:
2024 ($2,230,000)
2025 ($2,486,000)
2026 ($2,553,000)
2027 ($2,624,000)
2028 ($2,684,000)
All Funds, Five-Year Impact:
2024 ($2,230,000) ($6,691,000)
2025 ($2,486,000) ($7,457,000)
2026 ($2,553,000) ($7,659,000)
2027 ($2,624,000) ($7,871,000)
2028 ($2,684,000) ($8,051,000)
Fiscal Analysis
The bill would amend Section 162.227, Tax Code, regarding credit or refund for diesel fuel taxes paid on diesel fuel used by auxiliary power units or power take-off equipment in Texas.The bill would add Subsection (d-1) to Section 162.227 to allow a credit or refund of diesel fuel tax paid on diesel fuel used for auxiliary power units or power take-off equipment on any motor vehicle.The bill would take effect September 1, 2023.
Methodology
HB 2458 (78th Legislature, Regular Session, 2003) repealed Chapter 153 of the Tax Code (Motor Fuel Taxes) and replaced it with Chapter 162, which became the new motor fuel taxes chapter. Under former Chapter 153, specified entities could apply for a refund or take a credit for diesel fuel tax paid on diesel fuel used by auxiliary power units or power take-off equipment on any motor vehicle. This bill would reinstate the auxiliary power unit and power take-off deduction, previously allowed under former Chapter 153, Texas Tax Code. The bill would allow a diesel fuel tax license holder to take a credit and permit a person who does not hold a diesel fuel tax license to file a refund claim, for the amount of diesel fuel tax paid on diesel fuel used by an auxiliary power unit or power take-off equipment on any motor vehicle.The estimates were distributed by fund in accordance with the statutory allocation of diesel tax revenue. The estimate for fiscal 2024 was adjusted for the statutory lag in motor fuel tax remittances.
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, KK, SD
JMc, KK, SD