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