HBA-JRA C.S.S.B. 1068 76(R)BILL ANALYSIS


Office of House Bill AnalysisC.S.S.B. 1068
By: Fraser
Ways & Means
5/14/1999
Committee Report (Substituted)



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. 

C.S.S.B. 1068 requires the comptroller to retain a portion of the tax and
penalties collected under this chapter to cover an estimated deficiency of
net collections, as determined by the county tax assessor-collector, rather
than an actual deficiency.  In addition, this bill reformulates the
disposition of collections of the motor vehicle tax that are paid into the
county road and bridge fund. 

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(c), Tax Code, to require the comptroller
of public accounts (comptroller) to retain a portion of the tax and
penalties collected under this chapter to cover an estimated deficiency of
net collections, as determined by the county tax assessor-collector, rather
than an actual deficiency. 

SECTION 2.  Amends Section 502.102(b), (c), and (d), Transportation Code,
as follows: 

(b)  Requires the county assessor-collector to credit to the county road
and bridge fund an amount equal to the net collection made during the
preceding week until the amount so credited for the calendar year equals
the total of $60,000, $350 for each mile of county road maintained by the
county, and an amount equal to 50 percent of the net collections made
during the preceding week, until the amount so credited for the calendar
year equals $125,000.  Deletes the requirement that the county
assessor-collector credit to the fund an amount equal to five percent of
the tax and penalties collected by the assessor-collector under Chapter 152
(Tax on Sale, Use, and Rental of Motor Vehicles), Tax Code, in the
preceding calendar year and an amount equal to five percent of the tax and
penalties collected by the comptroller under Section 152.047 (Collection of
Tax on Seller-Financed Sale), Tax Code, in the preceding calendar year.
Deletes the requirement that the county assessor-collector send to the
Texas Department of Transportation an amount equal to 50 percent of the net
collections made during the preceding week. 

(c)  Requires the county assessor-collector to credit the county road and
bridge fund each Monday an amount equal to the five percent of the tax and
penalties collected in the preceding calendar year by the
assessor-collector under Chapter 152, Tax Code, and the comptroller under
Section 152.047, Transportation Code, after the credits to the county road
and bridge fund equal the total computed under Subsection (b). 

(d)  Makes a conforming change.
 
SECTION 3.  Effective date: January 1, 2000.

SECTION 4.  Emergency clause.

COMPARISON OF ORIGINAL TO SUBSTITUTE

The substitute modifies the original in the caption to include motor
vehicle registration fees. 

The substitute modifies the original in SECTION 1by amending Section
152.121(c), Tax Code, to require the comptroller of public accounts
(comptroller) to retain a portion of the tax and penalties collected under
this chapter to cover an estimated deficiency of net collections, as
determined by the county tax assessor-collector, rather than an actual
deficiency.  The original would have changed the section title to "Tax Sent
to Comptroller:  Counties With a Population of More Than 10,000" from "Tax
Sent to Comptroller" and added Subsection (d) to provide 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. 

The substitute deletes SECTION 2, which would have amended Subchapter G,
Chapter 152, Tax Code, by adding Section 152.1211 (Tax Sent to Comptroller:
Counties With a Population of 10,000 or Less).  The proposed section would
have required the county tax assessor-collector of a county with a
population of 10,000 or less 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.  The proposed section would have also required 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. 

The substitute redesignates SECTION 3 of the original to SECTION 2 (Section
502.102, Transportation Code) and modifies it by amending Subsections (c)
and (d), as well as modifying the proposed amendment to Subsection (b).
The substitute reformulates the disposition of collections of the motor
vehicle tax that are paid into the county road and bridge fund.  For a more
complete analysis of the new language, please see the Section-by-Section
Analysis portion of this document. The original required the county
assessor-collector to credit the fund an amount equal to five percent of
the tax and penalties collected by the assessor-collector under Chapter
152, Tax Code, in the preceding calendar year and an amount equal to five
percent of the tax and penalties collected by the comptroller under Section
152.047, Tax Code, in the preceding calendar year, for a county with a
population of more than 10,000. 

The substitute deletes SECTION 4 of the original, which would have amended
Section 502.108(e), Transportation Code, to make conforming changes. 

The substitute redesignates SECTION 5 (effective date) and SECTION 6
(emergency clause) of the original to SECTION 3 and 4.