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