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