Transcript Funding County Roads

Funding County Roads
9 2 ND A N N U A L C O U N T Y J U D G E S &
COMMISSIONERS ASSOCIATION OF TEXAS
STATE CONFERENCE-LUBBOCK, TEXAS
9/29/14-10/2/14
Funding of
County Roads

Taxes and Other Revenue

Fines

Registration fees

Gasoline Tax
Ad Valorem Tax Base


Special County Road Fund
from State of Texas

FM Roads and Flood
Control Tax

Special Road Tax

Road Districts

TRZ

CETRZ

Regional Mobility Authority
Gasoline Tax
Article VIII, Section 7-a, Texas Constitution:
 Subject to Legislative Appropriation, all net
revenues derived from motor vehicle
registration, and all taxes on motor fuels and
lubricants shall be used for the sole purpose of
acquiring right of way, constructing,
maintaining and policing public roadways, but
¼ of such funds allocated to the Available
School Fund.
 Tax is now $0.20 per gallon, $0.05 goes to
education.
 Counties are no longer receiving tax revenue
from gasoline tax, but are occasionally allowed
access to surplus road materials, or RAP.
General Ad Valorem Tax
 More than 60% of all road revenues come from the ad valorem tax.
 Road and Bridge costs are included in calculation and
formation of general budget.
 Allocation of Road and Bridge funds largely discretionary with
Commissioners Court, but should be based upon consideration
of many factors, including:
 Mileage of roads in each precinct
 Amount and type of traffic in each precinct
 Number of bridges or stream crossings in each precinct
 Kind and condition of bridges and crossings in each
precinct
 Taxable values in each precinct
 Population density in each precinct
 Geographic size and distance of necessary travel in each
precinct
 State or Federal Highways in each precinct (intersections)
 Other relevant information for each precinct
Ad Valorem Tax
Road and Bridge as a Part of the General County Budget.
Funded by taxation of real property (definition of real
property includes “minerals in place.”)
Part of the “M&O” used in the Effective Tax Rate
Calculation.
Available funds fluctuate with real property values
and corresponding tax rate.
Fees and Fines
 Registration Fees for Motor Vehicles (See §502.198
Transportation Code)
 Not to exceed $60,000, and
 $350 for each mile of county road, not to exceed
500 miles.
 And formula for Sale , Rental and Use of motor
vehicles.
 Various Traffic Laws provide for revenues to County.
 Overweight Truck fines (§623.011 Transportation
Code).
 Damages cause by overweight trucks (condition of
bond) See §623.012 Transportation Code.
Special County Road Tax
§256.052 Transportation Code
Requires an election as provided for in Chapter 51 of the
Water Code (sets out procedures of Notice, Hearing, and
adoption of a Tax Plan), on the petition of at least 200
voters for the entire county, or 50 for a smaller unit.
May be called for entire County, or a portion of the
County.
Rate cannot exceed $.15 per hundred.
Will be included in the calculation of a combined
maximum tax rate of $.80 per hundred.
Additional Tax for County Roads and Flood Control
Article VIII, Section 1-a, Texas Constitution, as
implemented by §256.054 Transportation Code.
Called by petition signed by not less than 10% of
voters casting votes in last general election.
Rate capped at no more than $.30 per hundred.
$3,000.00 exemption for homesteads.
Statute says it is to be use for construction and
maintenance of Farm to Market Roads or Flood
control.
Rarely used today. First adopted 1932 in midst of
depression.
Road Districts
Article III, §52, Texas Constitution, as implemented by
§257.001, Transportation Code.
Requires approval by 2/3rds of qualified voters in county or
proposed district.
May issue bonds not to exceed 25% of the assessed valuation
of property in such district, not to exceed constitutional limits
on maximum public tax rate.
For improvement of rivers, creeks, lakes, reservoirs,
dams, canals and waterways, or
The construction, maintenance and operations of
macadamized, graveled or paved roads and turnpikes.
Fire-fighting activities authorized by this section as well.
Transportation Reinvestment Zones
 §222.107 Texas Transportation Code
 A Tax Increment Fund, i.e. segregates a designated portion of
the “increase” in real property valuations in a particular zone
over the tax rate in effect when the Order creating the Zone is
created.
 Allows for the Commissioners Court to designate a portion of
the Increment fund to Transportation Projects anywhere in the
county, with the balance of revenue to the General Fund.
 Works best around areas of capital improvements, investments,
such as refineries, rail yards, industrial parks, or other revenue
generators, i.e. hotels, entertainment facilities, etc.
 Lapses at the end of 10 years, or until no longer fulfills intended
purpose.
 Cannot be used to pay bonded debt service.
CETRZ
 §222.1071 Transportation Code
 Required to be eligible for Texas Infrastructure Grant Funds
 Similar to the standard TRZ, but 100% of increase in valuations in
the zone must go to Transportation.
 Works best with temporary property valuation increases such as
mineral development.
 Lapses after 10 years, or until it no longer serves intended
purposes.
 Recent Ag. Opinion calls CETRZ into question:
 We believe opinion GA-1076 in error, does not recognize the
limitation on use to defer or pay bonded debt (basis for
Constitutional Amendment in 1981), and
 Does not recognize the ability to use funds outside the CETRZ zone.
 May require Legislative fix to clear air.
Regional Mobility Authority
§370.031 Transportation Code
One or more counties may petition the Texas Department of
Transportation for creation of an RMA.
Vested with powers of a governmental unit, other than
power to tax.
May borrow money, by way of revenue bonds.
Primarily a mechanism to plan, design and ultimately construct,
maintain, repair and operate a transportation project.
Principally used as a toll road builder, or a Pass Through road
manager.
For More Information
Call: Allison, Bass & Magee, LLP
402 West 12th Street
Austin, Texas 78701
5121-482-0701
[email protected]