Pub 61 2020-2021 Issue 3

22 5 nium, the e $25.2 o finance or of uring in 0 increase 07. Over stimates . es roduction 1987 surplus of fiscal ted to made represent . L 2023 MATED 804,000 289,000 093,000 L 2023 MATED 666,000 L 2023 MATED 573,583 013,189 586,772 476,717 Want More Details? T he Comptroller’s office publishes many reports that assist state government planning and decision-making and account for state spending to the taxpayers of Texas. This guide highlights some of the current data from several of these reports, and provides links to find more in-depth or updated data. The full reports can be found at comptroller.texas.gov/transparency/reports . Net State Revenue By Source F I SCA L 20 20 • A L L FUNDS , E XCLUD I NG TRUS T S SOURCE REVENUE CHANGE FROM FISCAL 2019 Tax Collections $57,379,818,422 -3.4% Federal Income $58,116,753,533 38.7% Licenses, Fees, Fines and Penalties $6,241,255,968 -4.6% State Health Service Fees and Rebates $7,497,445,421 5.8% Net Lottery Proceeds $2,391,653,302 -4.7% Land Income $1,809,260,539 -19.6% Interest and Investment Income $2,529,037,070 1.0% Settlements of Claims $624,354,317 -3.4% Escheated Estates $715,456,256 3.2% Sales of Goods and Services $254,791,196 -8.6% Other Revenue $4,016,496,511 -3.0% Total Net Revenue $141,576,322,535 10.7% Non-Tax Revenue The state’s major non-tax revenue sources are federal income, fees and licenses, state health- related fees and rebates, state lottery proceeds, land income and proceeds from the state’s investments. Taxes That Texas Does Not Levy Texas does not collect a state property tax. Property taxes are levied by local governmental entities, school districts and special purpose districts (see p. 20). Texans pay only federal and not state or local income taxes. Federal dollars contributed more than 41 % of total state net revenue in fiscal 2020 . 8 9 G L E N N H E G A R • T E X A S COMP TROL L ER OF PUBL I C ACCOUNT S MOTOR VEHICLE SALES & RENTAL TAXES Compound Annual Growth Rate (Fiscal 2011-2020): 5.5% 2015 2014 2013 2012 2019 2020 2018 2017 2016 FISCAL -5% 0% 5% 10% 15% 20% 8.5% 7.2% 2.3% -1.8% 9.7% -3.9% 0.7% 19.5% 9.0% MOTOR V E H I C L E SA L ES AND R ENTA L TAX ES T he motor vehicle sales and use tax, the largest tax in this category, is imposed on the retail sales price, less trade-in allowance, of motor vehicles sold in Texas. The motor vehicle rental tax is levied as a percentage of gross receipts derived from the rental of a vehicle, at a rate that varies depending on the length of the rental. In November 2015, voters approved a constitutional amendment to deposit 35 percent of the net annual revenue from these taxes above $5 billion to the State Highway Fund, beginning in fiscal 2020. The $5 billion threshold was not reached in fiscal 2020, but the transfer is projected to total $61.29 million in the 2022-23 biennium. COLLEC T IONS All Funds, Excluding Trusts (billions) $0 $1 $2 $4 $5 $6 $3 $5.18 A C T U A L E S T I MAT E D 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 TAX FUND FISCAL 2020 General Revenue Fund 1 $4,492,674,526 Motor Vehicle Sales and Use Tax Property Tax Relief Fund 2 $24,414,395 GR Account - Emissions Reduction Plan 3 $17,185,625 Motor Vehicle Rental Tax General Revenue Fund $291,863,240 Motor Vehicle Sales and Use Tax – Seller-Financed Motor Vehicles General Revenue Fund $161,320,139 GR Account - Emissions Reduction Plan 3 $25,664 Manufactured Housing Sales and Use Tax General Revenue Fund $27,750,998 Motor Vehicle Sales and Use Tax - Motor Carriers 4 General Revenue Fund $5,760 TOTAL 5 $4,815,240,348 FOOTNOTES 1 Since fiscal 2015, 95 percent of revenue is deposited into the General Revenue Fund; the remaining 5 percent is retained by counties. 2 Revenue derived from the tax based on a used vehicle’s presumptive value is deposited into the Property Tax Relief Fund. 3 100 percent of applicable surcharge is required to be transferred into GR Account – Emissions Reduction Plan. Beginning September 1, 2021, all revenue that was deposited into the TERP account will be allocated to a trust fund outside the State Treasury. 4 Repealed by S.B. 3, 74th Leg., R.S. effective Sept. 1, 1997. 5 May not sum due to rounding. 6 The 6.25 percent sales and use tax is based on the vehicle sales price less any trade-in. Additional taxes or surcharges may apply to the sale of certain diesel trucks. Rentals are taxed at 10 percent of gross receipts for rentals of 30 days or less and at 6.25 percent for rentals of 31 to 180 days. Manufactured housing sales are taxed at 5 percent of 65 percent of the sales price on the initial sale or use of a new manufactured home. 7 Estimated initial distribution of total motor vehicle sales tax revenue in fiscal 2023, as projected in the December 2020 Tax Exemptions and Tax Incidence Report . H I STOR I CAL VOLAT I L I T Y Year-over-year Change, All Funds, Excluding Trusts 8.4% Percentage of Total Tax Collection F I SCA L 20 20 All Funds, Excluding Trusts $4.82 BILLION H I G H L I G H T S : REVENUE FISCAL 2020 $ 4.82B STATE RATE 6.25% LOCAL RATE NONE FEDERAL RATE NONE 6 WHO PAYS? 7 BUSINESS 40.5% CONSUMER 59.5% REVENUE BY SOURC E BIENNIAL REVENUE ESTIMATE TAX EXEMPTIONS & TAX INCIDENCE SOURCES OF REVENUE ANNUAL CASH REPORT KEY TO SOURCES, PAGES 6-17 Continued from page 21 Want More Details? The Comptroller’s office publishes many reports that assist state government planning and decision-making and account for state spending to the taxpayers of Texas. This guide highlights some of the current data from several of these reports, and provides links to find more in-depth or updated data. The full reports can be found at comptroller.texas.gov/transparency/reports.