BILL ANALYSIS


                                                        S.B. 1492
                                                      By: Shapiro
                                                          Finance
                                                          4-28-95
                                     Committee Report (Unamended)
BACKGROUND

Currently, county and municipal governments audit hotels' tax
records to determine if hotels are remitting the local portion of
the state hotel occupancy tax.  The Comptroller's Office also
audits these records.  The duplication of effort occurs because
state law prohibits sharing certain tax information between the
state and local governments.  Local governments could streamline
auditing functions by having access to the comptroller's hotel tax
information.

PURPOSE

As proposed, S.B. 1492 authorizes the comptroller or the attorney
general to disclose to a municipality or county certain information
derived from an audit to ascertain compliance with the payment of
the hotel occupancy tax.

RULEMAKING AUTHORITY

It is the committee's opinion that this bill does not grant any
additional rulemaking authority to a state officer, institution, or
agency.

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Section 111.006, Tax Code, by amending Subsection
(a) and adding Subsection (d), as follows:

     (a)  Makes a conforming change.
     
     (d)  Authorizes the comptroller or the attorney general to
     disclose to a municipality or county information obtained by
     the comptroller or attorney general during an examination of
     the taxpayers' records or employees, if the information was
     derived from an examination performed for the purpose of
     ascertaining compliance with the hotel occupancy tax imposed
     under Chapter 156; the municipality or county makes written
     request for the information; the municipality or county making
     the request has imposed a local hotel occupancy tax authorized
     by Chapter 351 or 352, as applicable; the municipality or
     county uses the information only for the enforcement or
     administration of its local hotel occupancy tax; and to the
     extent consistent with the use authorized by Subdivision (4),
     the municipality or county keeps the information confidential
     as provided by this section.
     
     SECTION 2.     Effective date:  September 1, 1995.

SECTION 3. Emergency clause.