Austin, Texas

                           FISCAL NOTE
                       74th Regular Session

                          April 24, 1995

 TO:     Honorable John T. Montford, Chair      IN RE:  Senate BillNo. 1629
         Committee on Finance                           By: Henderson
         Austin, Texas

FROM: John Keel, Director

In response to your request for a Fiscal Note on Senate Bill No.
1629 (Relating to tax rebates for qualified hotel projects.) this
office has determined the following:

This bill would amend the Tax Code to increase the period of
eligibility for rebates or refunds of sales and use taxes and
hotel occupancy taxes for qualified enterprise hotel projects as
defined in the Texas Enterprise Zone Act.  The period of
eligibility for rebates or refunds from these taxes would be
increased to 10 years from the 7 years stipulated in current law.

Since the current law period of 7 years became effective in
fiscal year 1994, the change proposed by this bill would only
affect fiscal years beginning with 2001.  There would be no
fiscal impact to the state or units of local government through
2000, however the fiscal impact after 2000 cannot be determined.

Source:   Comptroller of Public Accounts
          LBB Staff: JK, SM, DF