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F I S C A L I M P A C T R E P O R T
SPONSOR Foley
DATE TYPED 02/16/05 HB 647
SHORT TITLE Uses For Funds From Certain 2003 Bond Sales
SB
ANALYST Padilla-Jackson
REVENUE
Estimated Revenue
Subsequent
Years Impact
Recurring
or Non-Rec
Fund
Affected
FY05
FY06
NFI
NFI
(Parenthesis ( ) Indicate Revenue Decreases)
SOURCES OF INFORMATION
LFC Files
Responses Received From
Taxation and Revenue Department (TRD)
SUMMARY
Synopsis of Bill
House Bill 647 requires certain municipalities to spend distributions from increased gross receipt
tax revenues attributable to goods and services sold for reconstruction or improvement projects
on road projects and road equipment, for which the sale of state transportation bonds is author-
ized. If the municipality has a population of 1,500 or more, then it must spend the entire distri-
bution on road projects and road equipment. If the municipality has a population of less than
1,500, then it may spend the distribution for any lawful purpose. The bill’s reference to the in-
creased gross receipts tax revenues is defined to be the sum of all the distributions made to a mu-
nicipality in a fiscal year that exceed the base amount. The base amount is the amount distrib-
uted adjusted for inflation and population growth factors.
The municipal road project is defined in the bill to mean construction, renovation, improvement
or repair of a highway, street or road within a municipality.
No effective date is provided.