LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE
75th Regular Session
April 22, 1997
TO: Honorable Rene Oliveira, Chair IN RE: Senate Bill No. 893, As Engrossed
Committee on Economic Development By: Moncrief
House
Austin, Texas
FROM: John Keel, Director
In response to your request for a Fiscal Note on SB893 ( Relating
to certain convention center hotel facilities.) this office
has detemined the following:
Biennial Net Impact to General Revenue Funds by SB893-As Engrossed FN Revision 1
The bill could have a fiscal impact on the State. However according
to the Comptroller's office, these types of sales and use and
hotel tax rebates have not been utilized to date and have not
created a loss to the State.
FISCAL ANALYSIS
The fiscal impact on the state would vary
depending on the number of hotel projects in enterprise zones
in the additional five cities that would qualify under the provisions
of the bill. Such qualified hotel projects and businesses located
in a qualified hotel project would receive a rebate of 100 percent
of the sales and use taxes and 100 percent of the hotel occupancy
taxes collected at these establishments. To the extent that
such sales and use taxes and hotel occupancy taxes are rebated,
the state would bear a corresponding revenue loss.
METHODOLOGY
Currently,
the definition of convention center facilities in the hotel
tax law includes hotels within 1,000 feet of a convention center
owned by a city with a population of 1.5 million or more, and
historic hotels within one mile of a convention center owned
by a city with a population of 1.5 million or more. Hotel tax
revenue from these two types of hotels may be pledged by a city
of population 1.5 million or more for the payment of bonds issued
to acquire and construct a convention center hotel or to acquire,
remodel or rehabilitate a historic hotel. A hotel owned by
a city with a population of 1.5 million or more is a qualified
hotel project in an enterprise zone.
The bill would lower
the city population bracket to 440,000 or more and include counties
with a population of 440,000 or more in the hotel tax law and
would allow the hotels to be within the same specified distance
to a city-owned or county-owned convention center. By lowering
the population bracket, the City of Houston would be joined
by the cities of Dallas, San Antonio, El Paso, Austin and Fort
Worth. The city population bracket would also be lowered to
440,000 for a qualified hotel project in an enterprise zone.
LOCAL
The
fiscal impact on units of local government would vary depending
on which cities or counties would choose to finance convention
center facilities through the municipal hotel tax.
Source: Agencies: 304 Comptroller of Public Accounts
LBB Staff: JK ,TH