LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE 75th Regular Session April 7, 1997 TO: Honorable Tom Craddick, Chair IN RE: House Bill No. 3043, Committee Report 1st House, Substituted Committee on Ways & Means By: Gallego House Austin, Texas FROM: John Keel, Director In response to your request for a Fiscal Note on HB3043 ( Relating to the authority of certain counties to impose a county hotel occupancy tax.) this office has determined the following:) this office has detemined the following: Biennial Net Impact to General Revenue Funds by HB3043-Committee Report 1st House, Substituted No significant fiscal implication to the State is anticipated. Fiscal Analysis The bill would amend Chapter 352 of the Tax Code to authorize a county that borders the Republic of Mexico and in which there is a national park of greater than 400,000 acres to impose a county hotel occupancy tax. The tax would be limited to 3 percent of the price paid for a room in a hotel. Once authorized, the county commissioners court could enact the tax by adoption of an order or resolution. The county would be required to use one-third of the revenues from the tax in unincorporated areas of the county. The bill would authorize a county that borders the Republic of Mexico and in which there is a state park with greater than 250,000 acres to impose a county hotel occupancy tax. The tax would be limited to 5 percent of the price paid for a room in a hotel. Once authorized, the county commissioners court 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 Brewster County and Presidio County. To determine the revenue gain to Brewster County, the most recent county hotel gross receipts data were obtained from Comptroller tax files. The data were multiplied by 3 percent, the maximum tax rate the county could impose. To determine the revenue gain to Presidio County, the most recent county hotel gross receipts data were obtained from Comptroller tax files. The data were multiplied by 5 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 Brewster County Presidio County (at the maximum (at the maximum 3% rate) 5% rate) LOCAL LOCAL 1998 $167,000 $32,500 1998 167,000 32,500 2000 167,000 32,500 2001 167,000 32,500 2002 167,000 32,500 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 ,RR ,SM