LEGISLATIVE BUDGET BOARD
                                   Austin, Texas
         
                                   FISCAL NOTE
                               75th Regular Session
         
                                  April 14, 1997
         
         
      TO: Honorable Tom Craddick, Chair            IN RE:  House Bill No. 1029
          Committee on Ways & Means                              By: Hawley
          House
          Austin, Texas
         
         
         
         
         FROM:  John Keel, Director    
         
In response to your request for a Fiscal Note on HB1029 ( Relating 
to qualifying certain municipalities to impose the municipal 
sales and use tax.) this office has detemined the following:
         
         Biennial Net Impact to General Revenue Funds by HB1029-As Introduced
         
No significant fiscal implication to the State is anticipated.
         

         
 
FISCAL ANALYSIS
The bill would amend Section 321.101 of the 
Tax Code to allow certain municipalities to impose an additional 
sales and use tax, which, when combined with other local sales 
and use taxes, would exceed the two cent local sales and use 
tax limit in a part of the municipality.  The provision would 
apply only to municipalities located less than one mile from 
the Gulf of Mexico, with a population of less than 10,000, and 
located in three counties, with one of the counties having less 
than 20 percent of the population of the municipality.

The 
bill would exclude from the local sales and use tax rate cap 
the portion of the municipality located in a county having less 
than 20 percent of the population of the municipality.  The 
bill would allow the total sales and use tax rate to be greater 
than 8.25 percent in the one-county portion of a three-county 
municipality that met the conditions of the bill.
          
LOCAL
The amount of the additional local sales and use tax 
that might be imposed would vary depending on which municipalities 
meeting the qualifications of the bill chose to impose an additional 
sales and use tax and the rate of such an additional sales and 
use tax.
          
   Source:            Agencies:   304   Comptroller of Public Accounts
                                         
                      LBB Staff:   JK ,RR ,SM