LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE 75th Regular Session May 13, 1997 TO: Honorable Eddie Lucio, Jr., Chair IN RE: House Bill No. 2064, As Engrossed Committee on Intergovernmental Relations By: King Senate Austin, Texas FROM: John Keel, Director In response to your request for a Fiscal Note on HB2064 ( Relating to the authority of certain counties to impose a county hotel occupancy tax.) this office has detemined the following: Biennial Net Impact to General Revenue Funds by HB2064-As Engrossed No significant fiscal implication to the State is anticipated. Fiscal Analysis The bill would amend Section 352.002 of the Tax Code to authorize a county with a population of 25,000 or less, having no more than four municipalities, and located wholly in the Edwards Aquifer Authority to impose a county hotel occupancy tax. In addition, the bill would authorize a county with a population of 25,000 or less, whose territory is less than 750 square miles and having two municipalities with population of 800 or less to impose a county hotel occupancy tax. Once authorized, the county commissioners court of such counties could enact the tax by adoption of an order or resolution. The bill would become effective immediately upon enactment, assuming that it received the requisite two-thirds majority votes in both houses of the Legislature. Otherwise, it would become effective 90 days after adjournment. Methodolgy The bill would affect only Uvalde County and Real County. To determine the revenue gain to the counties, the most recent county hotel gross receipts data were obtained from Comptroller's tax files. The data were multiplied by 7 percent, the maximum tax rate a county could impose. The probable fiscal implications of implementing the provisions of the bill during each of the first five years following passage is estimated as follows: Five Year Impact: Fiscal Year Probable Revenue Probable Revenue Gain/(Loss) to Gain/(Loss) to Uvalde County Real County (at (at a 7% rate) a 7% rate) LCL-CITY LCL-CITY 1998 $243,000 $32,000 1998 243,000 32,000 2000 243,000 32,000 2001 243,000 32,000 2002 243,000 32,000 Net Impact on General Revenue Related Funds: The probable fiscal implication to General Revenue related funds during each of the first five years is estimated as follows: Fiscal Year Probable Net Postive/(Negative) General Revenue Related Funds Funds 1998 $0 1999 0 2000 0 2001 0 2002 0 Similar annual fiscal implications would continue as long as the provisions of the bill are in effect. Source: Agencies: 304 Comptroller of Public Accounts LBB Staff: JK ,TL ,SM