LEGISLATIVE BUDGET BOARD
                                   Austin, Texas
         
                                   FISCAL NOTE
                               75th Regular Session
         
                                  May 2, 1997
         
         
      TO: Honorable Eddie Lucio, Jr., Chair            IN RE:  Senate Bill No. 1935
          Committee on Intergovernmental Relations                              By: Barrientos
          Senate
          Austin, Texas
         
         
         
         
         FROM:  John Keel, Director    
         
In response to your request for a Fiscal Note on SB1935 ( Relating 
to municipal hotel occupancy taxes.) this office has detemined 
the following:
         
         Biennial Net Impact to General Revenue Funds by SB1935-As Introduced
         
No significant fiscal implication to the State is anticipated.
         

         
 
          
This bill would add Austin and El Paso to the list of municipalities 
eligible to raise the hotel occupancy tax rate from 7 percent 
to 9 percent.  The Comptroller of Public Accounts estimates 
that such a 2 percent hike would increase annual revenues to 
the City of Austin by $4.5 million.  The City of El Paso is 
not expected to raise the hotel tax as a result of this bill's 
passage, since El Paso currently levies a rate below the 7 percent 
maximum (5.5 percent). 
          
   Source:            Agencies:   304   Comptroller of Public Accounts
                                         
                      LBB Staff:   JK ,TL