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<br />6--FISCA
<br />
<br />.Proiectcd
<br />SOURCE: Bob Bullock. Comptrollcr
<br />
<br /> 'lI7.''''7
<br /> ,/ , r , , Franchise $,993 I
<br />$9.306 Franchise $.856 Franchise $.90 I ~ Franchise $,921 Franchise $.835 V Other $ 1.524
<br />,/ Other $1.628 I Other $1.574 Other $1.537 Other $1.461 ~ Motor Vehicle
<br /> glotor "chicle ~lJ'tor Vehicle $,902 I
<br />Other $ 1.447 II Molor Vehicle , Motor Vehicle V ,786 $,819 Oil and Gas
<br />$,895 $.866 Oil and Gas I Oil and Gas $ 1.065
<br />Motor Vehicle I Oil and Gas Oil and Gas $1.075 - $ 1.003 Motor Fuels I
<br />$.718 $2,163 $1.548 Motor Fuels I 1\10tor Fuels I $1.032
<br />Oil and Gas Motor Fuels I $1.297 - $1.066
<br />$2,216 Motor Fuels I $1.012- Sales $4,798
<br /> $,987 Sales $4,786 Sales $4,545
<br />Motor Fuels_
<br />5.532 Sales $4,3311 Vi
<br /> Sales $4,192 ~l V'I
<br />Sales 53,785 tI
<br /> I;' II
<br />
<br />NOTES.
<br />
<br />, anU:lr~'
<br />
<br />9117
<br />
<br />Public Accounts,
<br />
<br />$10.23
<br />
<br />1987
<br />
<br />$
<br />
<br />16
<br />
<br />Sources of State Revenue Growth
<br />Funds Affecting Certification
<br />(Amounts in Billions)
<br />1982 $8.59
<br /> $8.59 D
<br /> $8.42 Tax collections
<br />1983 excluding base
<br /> $8.44 or rate changes.
<br /> 8.92 D
<br />1984
<br /> $9.24
<br /> Total tax
<br />1985 $9.15 collections.
<br /> I $10.59
<br />1986
<br /> 10
<br />1987*
<br />
<br />Franchise Tax
<br />The franchise tax is expected
<br />to be the third-biggest tax source
<br />in 1988-89, In the next biennium
<br />it will raise $1.8 billion--only 0,3
<br />percent above the 1986-87 level.
<br />Little growth is expected in the
<br />franchise tax because of the
<br />sluggishness of Texas business.
<br />The tax is based on the value of
<br />
<br />JfIE> 0 0 ....,..., iJ
<br />JJJlf) TJ~ JlT@,l!!Q,7],00fJ,
<br />
<br />~<13,[])(f{[]fj,OO<13
<br />
<br />Continued
<br />Motor fuels taxes are expected
<br />to raise $2,1 billion during the
<br />next biennium--a 9.1 percent de-
<br />cline from the 1986-87 level,
<br />again because the temporary tax
<br />increase will expire August 31,
<br />1987.
<br />Recently, most growth in
<br />motor fuels tax receipts has come
<br />from increases in the tax rate,
<br />not from increased fuel consump-
<br />tion. The underlying motor fuels
<br />tax base--the quantity of fuel
<br />sold--tends to grow somewhat
<br />more slowly than the state's pop-
<br />ulation because cars are becom-
<br />ing more fuel-efficient.
<br />In 1988-89 the motor fuels tax
<br />base will grow by 1.2 percent,
<br />while Texas' population is ex-
<br />pected to increase 2.3 percent.
<br />
<br />1988*
<br />1989*
<br />.Projectcd
<br />SOURCE: Bob Bullock. Comptrollcr of Public Accounts,
<br />Total Tax Collections
<br />Fiscal Years 1984-1989
<br />(Amounts in Billions)
<br />$10.721
<br />
<br />
<br />1988*
<br />
<br />1989*
<br />
<br />I
<br />,~
<br />A
<br />{~
<br />
<br />· Projected
<br />SOURCE: Bob Bullock. Comptroller of Public Accounts,
<br />
<br />Motor Fuels Tax Collections vs.
<br />Fiscal Years 1984-1989
<br />(Amounts in Millions)
<br />
<br />1984
<br />
<br />16.0
<br />
<br />$542.6
<br />
<br />
<br />1985
<br />
<br />6.3
<br />
<br />$986.9
<br />
<br />1986
<br />
<br />$1,011.5
<br />
<br />Population
<br />
<br />$1,297.2
<br />
<br />0 Total Motor Fuels Tax Collections
<br />0 Collections at 1984 Rate
<br />E3 Population
<br /> llOuar)' 19117. I'ISCAI. NOTES--7
<br />
<br />1987*
<br />
<br />1988*
<br />
<br />16.9
<br />
<br />$1,066.
<br />
<br />$1,031.7
<br />-
<br />546.4
<br />-.--
<br />17.2
<br />-
<br />1989*
<br />
<br />~
<br />
<br />Motor Vehicle Sales Tax
<br />Motor vehicle sales and rental
<br />taxes will be the fourth-biggest
<br />tax source in 1988-89. They are
<br />expected to bring iJl $1.7 billion
<br />in 1988-89, 4.2 percent more
<br />than in 1986-87. The projected
<br />increase in receipts is based on
<br />expected increases in car prices,
<br />In 1986 one million new cars
<br />and trucks were registered in
<br />Texas. About the same level of
<br />sales is predicted for 1988 and 1989.
<br />New car sales have been helped
<br />over the past two years by gener-
<br />ous manufacturers' incentives, in-
<br />cluding subsidized interest rates.
<br />Those incentives, however,
<br />may not continue. Their ending--
<br />or reduced incentives--along with
<br />the general weakness of the Texas
<br />economy, will allow only moder-
<br />
<br />The Natural Gas Tax
<br />In 1988-89 natural gas tax re-
<br />ceipts are expected to be $1.1 bil-
<br />lion--19,6 percent less than the
<br />$1.4 billion received in 1986-87
<br />and half of I 984-85's $2,2 billion
<br />
<br />ate growth In the motor vehicle
<br />sales tax in 1988-89
<br />
<br />in receipts, The fall in receipts will
<br />make the tax Texas' fifth-biggest
<br />source of tax revenue. As recently
<br />as 1984-85 it ranked second,
<br />The tax is based on the value
<br />of production, That means re-
<br />ceipts are determined by both
<br />price and quantity produced.
<br />Continued on page 8
<br />
<br />
<br />· Projected
<br />SOURCE: Bob Bullock. Comptroller of Public Accounts.
<br />
<br />I
<br />
<br />II
<br />
<br />.all
<br />311
<br />211
<br />
<br />9117*
<br />
<br />988*
<br />
<br />989*
<br />
<br />II
<br />
<br />:;11
<br />
<br />:;11
<br />
<br />taxable capital as measured by
<br />net worth,
<br />In 1986 oil and gas companies
<br />paid about 20 percent of the
<br />franchise tax. The oil and gas in-
<br />dustry's continuing decline will
<br />stand as the biggest impediment
<br />to franchise tax growth in
<br />1988-89.
<br />
<br />511
<br />
<br />Rl!rai/ Salf!.~
<br />S811
<br />
<br />Taxable Retail Sales vs.
<br />Fiscal Years 1984-1989
<br />(Amounts in Billions)
<br />
<br />Personal Income
<br />
<br />21111
<br />
<br />2511
<br />
<br />P~rsona/
<br />/ n('oml!
<br />S31l1l
<br />
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