BILL ANALYSIS


                                                        S.B. 1530
                                                        By: Ellis
                                                          Finance
                                                         04-25-95
                                     Committee Report (Unamended)
BACKGROUND

The Harris County commissioners court is currently authorized to
levy a two percent hotel occupancy tax within the city limits of
Houston.  Under Section 352.003(b) of the Tax Code, this tax is
scheduled to drop to one percent on January 1, 2001.

The revenues generated by the tax can be used for activities
related to convention centers, civic centers, tourism promotion,
and multi-purpose facilities like the Astrodome.

PURPOSE

As proposed, S.B. 1530 prohibits the county tax rate in a
municipality that has a population of 1,200,000 or more from
exceeding two percent of the price paid for a room in a hotel.

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 352.003(b), Tax Code, to prohibit the
county tax rate in a municipality that has a population of
1,200,000 or more from exceeding two percent of the price paid for
a room in a hotel.  Deletes reference to January 1, 2001, after
which the tax rate may not exceed one percent.

SECTION 2. Effective date:  September 1, 1995.

SECTION 3. Emergency clause.