HBA-JRA H.B. 1519 76(R)    BILL ANALYSIS


Office of House Bill AnalysisH.B. 1519
By: Junell
Ways & Means
4/15/1999
Introduced



BACKGROUND AND PURPOSE 

Prior to 1993, counties figured and collected motor vehicle registration
money separately from sales tax money.  At that time, counties collected
the sales tax and retained five percent of the funds at the end of the
month.  In 1993, the state changed the reimbursement method from sales tax
money. Currently, counties are required to send in all of the sales tax
money and retain the equivalent of the five percent sales tax from
registration money.  In smaller counties, the county does not collect
enough registration money to retain the sales tax commission from the
registration funds.  As a result, these smaller counties must wait for a
full calender year to receive the five percent reimbursement from the
state. The county does not benefit from the immediate use of the funds.
Additionally, there is a percentage of these counties that actually lose
part of their registration moneys due to the manner in which the
reimbursement is calculated. 

H.B. 1519 requires counties with populations under 10,000 to send 95
percent of the money collected from motor vehicle sales, rental, and use
tax and penalties to the comptroller and retain five percent as fees of
office or to be paid into the officers' salary fund of the county, thereby
allowing such counties to have full use of their fees while providing for
full reimbursement for services rendered to the State of Texas. 

RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that this bill does
not expressly delegate any additional rulemaking authority to a state
officer, department, agency, or institution. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Section 152.121, Tax Code, by amending the title and
adding Subsection (d), as follows: 

Sec. 152.121.  New title:  TAX SENT TO COMPTROLLER:  COUNTIES WITH A
POPULATION OF MORE THAN 10,000. 

(d)  Provides that Subsection (a) and (c), relating to the disposition of
revenue from the motor vehicle sales, rental, and use taxes and penalties,
apply only to a county with a population of more than 10,000. 

SECTION 2.  Amends Subchapter G, Chapter 152, Tax Code, by adding Section
152.1211, as follows: 

Sec. 152.1211.  TAX SENT TO COMPTROLLER:  COUNTIES WITH A POPULATION OF
10,000 OR LESS.  (a)  Provides that this section applies only to a county
with a population of 10,000 or less. 

(b)  Requires the county tax assessor-collector to send 95 percent of the
money collected from tax and penalties imposed by this chapter (Taxes on
Sale, Rental, and Use of Motor Vehicles) to the comptroller and retain five
percent as fees of office or to be paid into the officers' salary fund of
the county as provided by general law. 

 (c)  Requires the state portion of the taxes collected by the county tax
assessor-collector under this chapter to be sent to the comptroller on the
10th day of each month if the office of the county tax assessor-collector
collected less than $2 million of the taxes and penalties imposed by this
chapter during the last preceding state fiscal year, once each week if the
county tax assessor-collector collected  between $2 million and $10 million
of the taxes and penalties imposed by this chapter during the last
preceding state fiscal year, or daily (as collected) if the office of the
county tax assessor-collector collected more than $10 million of the taxes
and penalties imposed during the last preceding state fiscal year. 

SECTION 3.  Amends Section 502.102(b), Transportation Code, to make
conforming changes. 

SECTION 4.  Amends Section 502.108(e), Transportation Code, to make
conforming changes. 

SECTION 5.  Effective date: January 1, 2000.

SECTION 6.  Emergency clause.