LEGISLATIVE BUDGET BOARD
                              Austin, Texas
                                     
                    FISCAL NOTE, 77th Regular Session
  
                             February 7, 2001
  
  
          TO:  Honorable Rene Oliveira, Chair, House Committee on Ways &
               Means
  
        FROM:  John Keel, Director, Legislative Budget Board
  
       IN RE:  HB1032  by Shields (Relating to the purposes for which
               certain municipalities may use revenue from the municipal
               hotel occupancy tax.), As Introduced
  
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*  No fiscal implication to the State is anticipated.                    *
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This bill would amend Chapter 351 of the Tax Code to allow certain small
municipalities to use the revenue from the municipal hotel occupancy tax
for any general revenue purpose or for the general governmental operation
of the municipality.  A qualifying small municipality would be defined
as having a population of less than 5,000 and being partially surrounded
by a municipality with a population of more than 900,000.

Currently, revenue from the municipal hotel occupancy tax can be used by
municipalities only to promote tourism and the convention and hotel
industry.
  
Local Government Impact
  
No fiscal implication to units of local government is anticipated.
  
  
Source Agencies:   304   Comptroller of Public Accounts
LBB Staff:         JK, SD, WP