Pub 61 2020-2021 Issue 3

23 SPRING 2021 9 • T E X A S COMP TROL L ER OF PUBL I C ACCOUNT S & 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% SA L ES AND R ENTA L TAX ES 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 $4,292,674,526 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 % of revenue is deposited into the General Revenue Fund; the remaining 5 % 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 % of applicable surcharge is required to be transferred into GR Account – Emissions Reduction Plan. Beginning Sept. 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all revenue that was deposited into the TERP account will be allocated to a trust fund outside the State Treasury. 4 Repealed by S.B. 3, 74th Leg., R.S. effective Sept. 1, 1997. 5 May not sum due to rounding. 6 The 6.25 % sales and use tax is based on the vehicle sales price less any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 % of gross receipts for rentals of 30 days or less and at 6.25 % for rentals of 31 to 180 days. Manufactured housing sales are taxed at 5 % of 65 % 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% 1 9 4 1 nd use tax, the ry, is imposed ess trade-in les sold in Texas. tax is levied as a pts derived from a rate that varies of the rental. oters approved a t to deposit 35 % from these taxes ate Highway 2020. The $5 reached in fiscal projected to total 2-23 biennium. ge of ollection 20 ing Trusts LION 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 MOTOR VEHICLE SALES AND RENTAL TAXES E N AC T E D 19 41 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 ve- hicles 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 de- posit 35% of the net annual revenue from these taxes above $5 billion to the State Highway Fund, beginning in fiscal 2020. The $5 billion thresh- old was not reached in fiscal 2020, but the transfer is projected to total $61.29 million in the 2022-23 biennium. 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 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 $4,292,674,526 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 % of revenue is deposited into the General Revenue Fund; the remaining 5 % 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 % of applicable surcharge is required to be transferred into GR Account – Emissions Reduction Plan. Beginning Sept. 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 % 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 % of gross receipts for rentals of 30 days or less and at 6.25 % for rentals of 31 to 180 days. Manufactured housing sales are taxed at 5 % of 65 % 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% E N A C T E D 1 9 4 1 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 % 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. 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 8 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 2011 2012 2013 2014 TAX FUND General Revenue Fund 1 Motor Vehicle Sales and Use Tax Property Tax Relief Fun GR Account - Emissions Reduction Plan 3 Motor Vehicle Rental Tax General Revenue Fund Motor Vehicle Sales and Use Tax – Seller-Financed Motor Vehicles General Revenue Fund GR Account - Emission Reduction Plan 3 Manufactured Housing Sales and Use Tax General Revenue Fund Motor Vehicle Sales and Use Tax - Motor Carriers 4 General Revenue Fund TOTA FOOTNOTES 1 Since fiscal 2015, 95 % of revenue is deposited into the General Reve remaining 5 % is retained by counties. 2 Revenue derived from the tax based on a used vehicle’s presumptive the Property Tax Relief Fund. 3 100 % of applicable surcharge is required to be transferred into GR Ac Emissions Reduction Plan. Beginning Sept. 1, 2021, all revenue tha TERP account will be allocated to a trust fund outside the State Tre 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 % sales and use tax is based on the vehicle sales price less a Additional taxes or surcharges may apply to the sale of certain diesel 10 % of gross receipts for rentals of 30 days or less and at 6.25 % for Manufactured housing sales are taxed at 5 % of 65 % of the sales pric a new manufactured home. 7 Estimated initial distribution of total motor vehicle sales tax revenu projected in the December 2020 Tax Exemptions and Tax Incidence 8.4% billion threshold was not reached in fiscal 2020, but the transfer is projected to total $61.29 million in the 2022-23 biennium. Percentage of Total Tax Collection F I SCA L 20 20 All Funds, Excluding Trusts $4.82 BILLION REVENUE BY SOURC Continued on page 24 1 Si ce fiscal 2015, 95% f revenue is deposi ed into the Ge eral Revenue Fund; the remaining 5% is retained by counties. 2 evenue derived from the tax based on a used vehicle’s pre- sumptive value is deposit d into he Property Tax Relief Fund. 3 100% of applicable surcharge is requires to be transferred into GR Account — emissions Reduction Plan. Beginning Sept. 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. FOOTNOTES