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