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:  HB297  by Seaman (Relating to the allocation of state
               hotel occupancy tax revenue to certain municipalities.),
               As Introduced
  
**************************************************************************
*  Estimated Two-year Net Impact to General Revenue Related Funds for    *
*  HB297, As Introduced:  negative impact of $(655,417) through the      *
*  biennium ending August 31, 2003.                                      *
**************************************************************************
  
General Revenue-Related Funds, Five-Year Impact:
  
          ****************************************************
          *  Fiscal Year  Probable Net Positive/(Negative)   *
          *               Impact to General Revenue Related  *
          *                             Funds                *
          *       2002                           $(314,417)  *
          *       2003                            (341,000)  *
          *       2004                            (369,417)  *
          *       2005                            (400,583)  *
          *       2006                            (433,583)  *
          ****************************************************
  
All Funds, Five-Year Impact:
  
**************************************************************************
*Fiscal    Probable Revenue     Probable Revenue     Probable Revenue    *
* Year     Gain/(Loss) from     Gain/(Loss) from      Gain/(Loss) to     *
*        General Revenue Fund  Hotel Occupancy Tax    Affectedl Local    *
*                0001           Deposits Account    Units of Government  *
*                                     5003                               *
*  2002             $(314,417)            $(28,583)             $343,000 *
*  2003              (341,000)             (31,000)              372,000 *
*  2004              (369,417)             (33,583)              403,000 *
*  2005              (400,583)             (36,417)              437,000 *
*  2006              (433,583)             (39,417)              473,000 *
**************************************************************************
  
Fiscal Analysis
  
The bill would amend Chapter 156 of the Tax Code to require the
Comptroller to compute and issue quarterly warrants equivalent to a
portion of the state hotel occupancy tax collections at a rate of 1
percent from certain "eligible small coastal municipalities" back to
those municipalities.  The revenue could only be used to clean and
maintain public beaches within an eligible municipality.

Eligible municipalities would be defined as those general-law or
home-rule municipalities with a population of less than 5,000, that
border on the Gulf of Mexico, and that are located on a barrier island
or have boundaries within 30 miles of Mexico.  The eligible
municipalities are Port Aransas and Jamaica Beach.
  
  
Methodology
  
Under current law, certain general-law municipalities are eligible to
receive such warrants, but home-rule municipalities are not eligible for
the 1 percent-equivalent payments.

Data on hotel occupancy revenues from the municipalities that would newly
qualify for the payments were gathered from Comptroller tax files.
Revenues were adjusted to the 1 percent rate to determine the potential
loss to the General Revenue Fund 0001 and the Department of Economic
Development Account 5003 and the potential gain to the eligible
municipalities.
  
  
Local Government Impact
  
The fiscal impacts on units of local government were estimated
proportionally.
  
  
Source Agencies:   304   Comptroller of Public Accounts
LBB Staff:         JK, SD