HBA-AMW S.B. 180 77(R)    BILL ANALYSIS


Office of House Bill AnalysisS.B. 180
By: Fraser
Ways & Means
4/27/2001
Engrossed



BACKGROUND AND PURPOSE 

Prior to 1993, counties computed and collected motor vehicle registration
revenue separately from sales tax revenue, and counties collected the sales
tax and retained five percent of the funds at the end of each month.  In
1993, Texas changed the reimbursement method for sales tax revenue.
Currently, counties are required to send in all of the sales tax money and
retain the equivalent of the five percent sales tax revenue from
registration money.  Senate Bill 180 modifies the method by which the funds
are credited to the county road and bridge fund and changes the procedure
for determining if the amount of net collections from the registration of
vehicles is insufficient to cover the amount of collections that are
authorized to be retained by a county from taxes on the sale, rental, and
use of motor vehicles. 

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. 

ANALYSIS

Senate Bill 180 amends the Tax and Transportation codes to modify
disposition by counties of motor vehicle registration fees and sales tax
revenue.  The bill modifies the method by which the county tax
assessor-collector credits required amounts to the county road and bridge
fund. 

The bill provides that the county tax assessor-collector may use an
estimate of the amount of net collections, rather than the actual amount of
net collections, from the registration of vehicles to determine whether the
amount of collections is insufficient to cover the amount of those
collections authorized to be retained by a county as a percentage of the
tax and penalties collected from taxes on the sale, rental, and use of
motor vehicles. 

EFFECTIVE DATE

January 1, 2002.