Texas State Finance Report, Volume 82, Number 3, March 11, 2011 Page: 4
This report is part of the collection entitled: Texas State Publications and was provided to The Portal to Texas History by the UNT Libraries Government Documents Department.
Extracted Text
The following text was automatically extracted from the image on this page using optical character recognition software:
Page 4 House Research Organization
Constitution, Art. 8, sec. 7-a, dedicates one-fourth of
state motor fuels tax revenue to the Available School
Fund, with the remaining three-fourths dedicated to
highway-related purposes. One percent of motor fuels
tax revenue is deducted to enforce state motor fuels tax
laws before the remainder is deposited into the State
Highway Fund (Fund 6). The comptroller estimates
motor fuels taxes will generate $6.3 billion in all funds
in fiscal 2012-13, an increase of 3.5 percent from $6.1
billion in fiscal 2010-11. The motor fuels tax rates were
last raised in 1991.
The Legislature has considered, but not enacted,
several proposals to increase motor fuels taxes in
recent years. The 81st Legislature in 2009 considered
a measure, SB 855 by Carona, to allow a county the
option to impose and collect a tax of 10 cents per gallon
on the sale of gasoline and diesel fuel if such a measure
were approved by a majority of voters in the county. The
measure died in the House Calendars Committee.
One proposal would increase the 20-cent tax on
gas and diesel fuel, contingent upon a Constitutional
amendment dedicating a certain portion of any increase
to pay off debt service for previously issued highway
bonds.
Registration and other fees. The state collects
various fees associated with operating a motor vehicle.
The largest of these revenue sources is motor vehicle
registration fees and permits for special vehicles, such
as those of excess size or weight. The comptroller
estimates that motor vehicle registration fees, which are
deposited into Fund 6, will generate $2.4 billion in fiscal
2012-13.
The 82nd Legislature may consider proposals to
increase motor vehicle registration fees. According to an
estimate from the Texas Transportation Institute (TTI),
a $25 annual increase in the vehicle registration fee
would generate another $623 million in annual revenue,
which could be leveraged to secure about $8.3 billion
in transportation bonds. A $35 increase in the fee would
bring another $873 million, and an increase of $50,
another $1.2 billion.
In its Efficiency report, the LBB proposed
restructuring the highway maintenance fee that the state
levies - in addition to the special vehicle registration
fee - on oversize and overweight vehicles. The LBBsuggests these fees could be restructured to generate an
additional $6 million in revenue, a 10 percent increase.
Other motor vehicle-related revenue comes from
fees for:
* vehicle inspections, driver's licenses, certificate of
title fees, and driver record information;
* citations for traffic violations, from which the state
receives the first $30;
* surcharges for violations under the Driver's
Responsibility Program, including for DUI and
driving without a license or insurance;
* special license plates; and
* penalties on certain commercial motor vehicles.
Many of these fees are deposited in the Texas
Mobility Fund, where they are used to secure bond debt
for transportation projects.
Traffic fines. In its Efficiency report, the LBB
proposed increasing the state traffic fine from $30 to
$45 for each person found guilty of committing a traffic
violation. The LBB estimates this would generate
$85 million in general revenue and general revenue-
dedicated funds for fiscal 2012-13, while positively
affecting driver behavior and helping fund traffic
enforcement and safety programs. Revenue from traffic
fines goes, in part, to a state fund for trauma centers and,
in part, to the General Revenue Fund.
Business margins tax
The margins tax is Texas' tax on businesses with
some level of liability protection. It is expected to
generate $5.3 billion in fiscal 2010-11 and $5.8 billion in
fiscal 2012-13. The tax is 1 percent of a business entity's
taxable margin. It is .5 percent for retail businesses. The
taxable margin is calculated in one of three ways:
* 70 percent of total revenue;
* total revenue less the cost of goods sold; or
* total revenue less employee compensation.
Taxpayers with less than $10 million in revenue
may also use an "EZ" calculation of 0.575 percent of
applicable revenue. In 2009, the 81st Legislature enacted
HB 4765 by Oliveira, which temporarily increased the
small business exemption from the margins tax fromHouse Research Organization
Page 4
Upcoming Pages
Here’s what’s next.
Search Inside
This report can be searched. Note: Results may vary based on the legibility of text within the document.
Tools / Downloads
Get a copy of this page or view the extracted text.
Citing and Sharing
Basic information for referencing this web page. We also provide extended guidance on usage rights, references, copying or embedding.
Reference the current page of this Report.
Texas. Legislature. House of Representatives. Research Organization. Texas State Finance Report, Volume 82, Number 3, March 11, 2011, report, March 11, 2011; Austin, Texas. (https://texashistory.unt.edu/ark:/67531/metapth326790/m1/4/: accessed April 19, 2024), University of North Texas Libraries, The Portal to Texas History, https://texashistory.unt.edu; crediting UNT Libraries Government Documents Department.