LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 89TH LEGISLATIVE REGULAR SESSION April 13, 2025 TO: Honorable Morgan Meyer, Chair, House Committee on Ways & Means FROM: Jerry McGinty, Director, Legislative Budget Board IN RE: HB4226 by Morales Shaw (Relating to an exemption from the taxes imposed on the sale, use, or rental of a motor vehicle for a vehicle purchased, used, or rented by a nonprofit food bank.), As Introduced Estimated Two-year Net Impact to General Revenue Related Funds for HB4226, As Introduced: a negative impact of ($571,000) through the biennium ending August 31, 2027. Additionally, the bill will have a direct impact of a revenue loss to the Property Tax Relief Fund of ($4,000) for the 2026-27 biennium. Any loss to the Property Tax Relief Fund must be made up with an equal amount of General Revenue to fund the Foundation School Program. General Revenue-Related Funds, Five- Year Impact: Fiscal Year Probable Net Positive/(Negative) Impact toGeneral Revenue Related Funds2026($284,000)2027($287,000)2028($291,000)2029($294,000)2030($297,000)All Funds, Five-Year Impact: Fiscal Year Probable Revenue (Loss) fromGeneral Revenue Fund1 Probable Revenue (Loss) fromProperty Tax Relief Fund3042026($284,000)($2,000)2027($287,000)($2,000)2028($291,000)($2,000)2029($294,000)($2,000)2030($297,000)($2,000) Fiscal AnalysisThe bill would exempt vehicles purchased, used, or rented by a nonprofit food bank, as defined in statute, from the taxes imposed by this chapter.The bill would require the exempted vehicles to be used primarily for the food bank's purposes.The bill would take effect September 1, 2025.
LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 89TH LEGISLATIVE REGULAR SESSION
April 13, 2025
TO: Honorable Morgan Meyer, Chair, House Committee on Ways & Means FROM: Jerry McGinty, Director, Legislative Budget Board IN RE: HB4226 by Morales Shaw (Relating to an exemption from the taxes imposed on the sale, use, or rental of a motor vehicle for a vehicle purchased, used, or rented by a nonprofit food bank.), As Introduced
TO: Honorable Morgan Meyer, Chair, House Committee on Ways & Means
FROM: Jerry McGinty, Director, Legislative Budget Board
IN RE: HB4226 by Morales Shaw (Relating to an exemption from the taxes imposed on the sale, use, or rental of a motor vehicle for a vehicle purchased, used, or rented by a nonprofit food bank.), As Introduced
Honorable Morgan Meyer, Chair, House Committee on Ways & Means
Honorable Morgan Meyer, Chair, House Committee on Ways & Means
Jerry McGinty, Director, Legislative Budget Board
Jerry McGinty, Director, Legislative Budget Board
HB4226 by Morales Shaw (Relating to an exemption from the taxes imposed on the sale, use, or rental of a motor vehicle for a vehicle purchased, used, or rented by a nonprofit food bank.), As Introduced
HB4226 by Morales Shaw (Relating to an exemption from the taxes imposed on the sale, use, or rental of a motor vehicle for a vehicle purchased, used, or rented by a nonprofit food bank.), As Introduced
Estimated Two-year Net Impact to General Revenue Related Funds for HB4226, As Introduced: a negative impact of ($571,000) through the biennium ending August 31, 2027. Additionally, the bill will have a direct impact of a revenue loss to the Property Tax Relief Fund of ($4,000) for the 2026-27 biennium. Any loss to the Property Tax Relief Fund must be made up with an equal amount of General Revenue to fund the Foundation School Program.
Estimated Two-year Net Impact to General Revenue Related Funds for HB4226, As Introduced: a negative impact of ($571,000) through the biennium ending August 31, 2027. Additionally, the bill will have a direct impact of a revenue loss to the Property Tax Relief Fund of ($4,000) for the 2026-27 biennium. Any loss to the Property Tax Relief Fund must be made up with an equal amount of General Revenue to fund the Foundation School Program.
Additionally, the bill will have a direct impact of a revenue loss to the Property Tax Relief Fund of ($4,000) for the 2026-27 biennium. Any loss to the Property Tax Relief Fund must be made up with an equal amount of General Revenue to fund the Foundation School Program.
General Revenue-Related Funds, Five- Year Impact:
2026 ($284,000)
2027 ($287,000)
2028 ($291,000)
2029 ($294,000)
2030 ($297,000)
All Funds, Five-Year Impact:
2026 ($284,000) ($2,000)
2027 ($287,000) ($2,000)
2028 ($291,000) ($2,000)
2029 ($294,000) ($2,000)
2030 ($297,000) ($2,000)
Fiscal Analysis
The bill would exempt vehicles purchased, used, or rented by a nonprofit food bank, as defined in statute, from the taxes imposed by this chapter.The bill would require the exempted vehicles to be used primarily for the food bank's purposes.The bill would take effect September 1, 2025.
Methodology
Annual estimates of state motor vehicle sales and use taxes and motor vehicle rental taxes were derived from data for a statewide network of food banks obtained from the Houston Food Bank regarding the (1) number of vehicles purchased, leased, and rented; (2) motor vehicle sales and use taxes paid; and (3) motor vehicle rental taxes paid by the 20 food banks across Texas that are affiliated with the organization Feed Texas. These annual estimates were forecast for fiscal 2026 to 2030 using the annual population change in Texas from the 2026-27 Biennial Revenue Estimate economic forecast.
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