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| SPONSOR: | Larranaga | DATE TYPED: | 2-24-99 | HB | 307 | ||
| SHORT TITLE: | Motor Vehicle Excise Tax Distribution | SB | |||||
| ANALYST: | Taylor | ||||||
| Subsequent
Years Impact |
Recurring
or Non-Rec |
Fund
Affected | ||
| FY99 | FY2000 | |||
| $ 0.0 | $ (30,900.0) | $ (65,200.0) | Recurring | General Fund |
| $ 0.0 | $ 10,300.0 | $ 21,733.3 | Recurring | State Road Fund |
| $ 0.0 | $ 10,300.0 | $ 21,733.3 | Recurring | County Gov. |
| $ 0.0 | $ 10,300.0 | $ 21,733.3 | Recurring | Municipal Gov. |
(Parenthesis ( ) Indicate Revenue Decreases)
Duplicates/Conflicts with/Companion to/Relates to
SOURCES OF INFORMATION
Taxation and Revenue Department (TRD)
State Highway and Transportation Department (SHTD)
SUMMARY
Synopsis of Bill
House Bill 307 would transfer the motor vehicle excise tax from the general fund to the Road Fund and county and municipal governments. The counties and cities would be required to use the money for roads and other transportation related projects. Distributions to counties would be proportional to the share of public roads maintained. Distributions to cities would be proportional to the cities' share of population as determined in the last decennial census.
The transfer would be phased in over three years, beginning in FY 2000. In the first year, the general fund would lose one third of the revenue from the tax while the state road fund, counties and cities would each receive one-ninth. In FY 2001, the general fund would lose an additional one-third, and the state road fund, counties and cities would gain an additional one ninth. In FY 2002, the transfer would be complete, with the state road fund, counties and municipalities each receiving one-third of the tax revenue.
FISCAL IMPLICATIONS
The fiscal implications of the bill are shown in the following table. The revenue numbers are based on the state's five year revenue estimate.
| FY 2000 | FY 2001 | FY 2002 | |
| General Fund | ($30.900) | ($65,200) | ($103,500) |
| State Road Fund | $10,300 | $21,733 | $34,500 |
| County Government | $10,300 | $21,733 | $34,500 |
| Municipal Government | $10,300 | $21,733 | $34,500 |
ADMINISTRATIVE IMPLICATIONS
TRD reports that the proposed changes would result in a minor administrative impact, but that the department could administer the changes with existing resources.
OTHER SUBSTANTIVE ISSUES
The analysis provided by SHTD included a table demonstrating what the local government distributions might look like when the transfer of the tax was fully phased in. The tables are attached to this FIR.
BT/gm
Attachment