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