HBA-AMW H.B. 341 77(R) BILL ANALYSIS Office of House Bill AnalysisH.B. 341 By: Keffer Ways & Means 2/15/2001 Introduced 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. House Bill 341 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 House Bill 341 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.