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| SPONSOR: | Smith | DATE TYPED: | 02-04-99 | HB | |||
| SHORT TITLE: | Distribution of Motor Vehicle Excise Tax | SB | 260 | ||||
| ANALYST: | Taylor | ||||||
| Subsequent
Years Impact |
Recurring
or Non-Rec |
Fund
Affected | ||
| FY99 | FY2000 | |||
| N.A. | NFI | NFI | Recurring | General Fund |
| N.A. | NFI | NFI | Recurring | Road Fund |
(Parenthesis ( ) Indicate Revenue Decreases)
Duplicates/Conflicts with/Companion to/Relates to HB307, SB105
SOURCES OF INFORMATION
Taxation and Revenue Department
State Highway and Transportation Department
SUMMARY
Synopsis of Bill
Senate Bill 260 would gradually transfer motor vehicle excise tax revenue from the general fund to the road fund in the year after the highway department's annual debt service payments are below $30 million. In the first year after the $30 million threshold is met, 25 percent of motor vehicle excise revenues would be transferred; the next year 50 percent would be transferred, the third year, 75 percent would be transferred; and in the fourth year, all revenue from the tax would be sent to the road fund. However, if the road fund debt service were to increase above the $30 million threshold after the fourth year, motor vehicle excise tax revenues would be diverted back to the general fund. SHTD's use of the money would be restricted to the maintenance and improvement of current state highways.
FISCAL IMPLICATIONS
Reports from SHTD and TRD say that there would be no fiscal impact because SHTD debt service is above $30 million, and they do not believe that it will be below that figure in the foreseeable future.
ADMINISTRATIVE IMPLICATIONS
Neither TRD nor SHTD reported administrative impacts.
BT/njw