LEGISLATIVE BUDGET BOARD
                              Austin, Texas
                                     
                    FISCAL NOTE, 77th Regular Session
  
                             February 2, 2001
  
  
          TO:  Honorable Rene Oliveira, Chair, House Committee on Ways &
               Means
  
        FROM:  John Keel, Director, Legislative Budget Board
  
       IN RE:  HB255  by Ellis, Dan (Relating to exempting members of
               certain emergency service organizations from the hotel
               occupancy tax.), As Introduced
  
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*  No significant fiscal implication to the State is anticipated.        *
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The bill would amend Chapter 156 of the Tax Code to exempt certain
members of emergency service organizations from the hotel occupancy tax.
Such persons would be exempted from the municipal and county occupancy
taxes, as well.

The exemption would apply specifically to members of a volunteer fire
department or any other department or association organized for the
purpose of answering fire alarms or extinguishing fires.  To be eligible
for the exemption, the member would have to work without compensation or
only nominal compensation and would have to be training outside the
member's county of residence or assisting another department or
association.

Data were gathered from the Texas Association of Fire Fighters and from
the Texas A&M Fire Training School on the number of volunteer fire
fighters in the state of Texas and the required training, location of
training, and frequency of training.  These data were used to estimate
the number of volunteer fire fighters that travel out of their county for
training and the annual number of hotel night stays associated with that
training.  Data from the Texas Department of Economic Development were
used to determine the state average cost of a hotel night.  This cost was
then applied to the estimated number of hotel night stays and the
applicable state and local tax rates.  It was determined that there would
be no significant fiscal impact for the state and local governments.
  
Local Government Impact
  
No significant fiscal implication to units of local government is
anticipated.
  
  
Source Agencies:   304   Comptroller of Public Accounts
LBB Staff:         JK, SD, SM