LEGISLATIVE BUDGET BOARD
                                   Austin, Texas
         
                                   FISCAL NOTE
                               75th Regular Session
         
                                  May 10, 1997
         
         
      TO: Honorable Tom Craddick, Chair            IN RE:  House Bill No. 2929, Committee Report 1st House, Substituted
          Committee on Ways & Means                              By: Coleman
          House
          Austin, Texas
         
         
         
         
         FROM:  John Keel, Director    
         
In response to your request for a Fiscal Note on HB2929 ( Relating 
to the taxes of which a qualified hotel project is entitled 
to a refund, rebate, or payment and to the collection of those 
taxes.) this office has detemined the following:
         
         Biennial Net Impact to General Revenue Funds by HB2929-Committee Report 1st House, Substituted   FN Revision 1
         
The fiscal implication of the mixed beverage tax refund would 
depend on the number of qualified hotel projects built or remodeled.
         

         
 
FISCAL ANALYSIS
The bill would amend Chapter 151 of the Tax 
Code to provide that 100 percent of mixed beverage taxes paid 
by permittees located in a qualified hotel project and not rebated 
to a county or municipality under section 183.051 of the Tax 
Code, would be available for rebate, refund, or payment to the 
owner of the project.  The rebate, refund, or payments would 
be effective for a ten-year period.

The Comptroller of Public 
Accounts would be required to enter into agreements with hotel 
project owners entitled to receive rebates, refunds, or payments 
of state tax revenue under which the hotel project owner would 
collect and retain the taxes.  An agreement would specify the 
beginning and ending dates of the agreement, require a hotel 
project owner to file periodic reports with the Comptroller, 
and require the owner of a project to keep records detailing 
the amount of each tax collected and retained. 

The bill 
would take effect on July 1, 1997 if the measure passes by a 
two-thirds majority in both houses. Otherwise, the bill would 
take effect on October 1, 1997.  The bill would not affect taxes 
imposed before the effective date of the bill. The law in effect 
before that date would be continued in effect for purposes of 
the liability for and collection of those taxes. 

METHODOLOGY
A 
qualified hotel project means a hotel proposed to be built by 
a municipality or non-profit municipally-sponsored corporation 
within 1,000 feet of a convention center and owned by a municipality 
of 1.5 million population or more.
          
LOCAL
No significant fiscal implication to units of local government 
is anticipated.
          
   Source:            Agencies:   
                                         
                      LBB Staff:   JK ,BR