LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 77th Regular Session
May 9, 2001
TO: Honorable Florence Shapiro, Chair, Senate Committee on
State Affairs
FROM: John Keel, Director, Legislative Budget Board
IN RE: HB1772 by Brimer (relating to the approval and financing
of sports and community venue projects.), Committee
Report 2nd House, Substituted
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* No significant fiscal implication to the State is anticipated. *
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It is estimated that the number of violations that would be assessed, and
the amount that the Texas Ethics Commission would charge for a violation
of the false and misleading campaign material provision, would be
minimal.
The bill would amend Chapter 334 of the Local Government Code, relating
to sports and community venue projects. The bill would expand the
definition of "venue" to include a project authorized by Section 4A or 4B
of the Development Corporation Act of 1979. Reimbursement of tax
collection expenses would be authorized for a person required to collect
and remit the short-term motor vehicle rental tax, under Chapter 334, if
the municipality or county received the amount required to be collected
no later than the 15th day after the end of the collection period.
Reimbursement would be equal to 1 percent of the amount collected. The
bill would allow a municipality with a population of less than 120,000,
that is located in three counties, and that acquires by purchase or
lease, with a term of at least 20 years, an interest in real property
that has to be maintained as park property to use revenue from the local
hotel occupancy tax for a variety of purposes. The purpose could be to
acquire, construct, improve, and equip a venue project that is a
convention center or related infrastructure to be constructed on the real
property. The municipality could pledge the revenue to the payment of
bonds or other obligations the municipality issued to finance the
convention center facility or related infrastructure.
The bill would require that each bill or other receipt for a hotel charge
include a statement of the 6 percent state hotel occupancy tax imposed
in addition to the tax imposed to finance a venue project. If a hotel
charge were subject to any other hotel occupancy taxes, the statement
would have to include each taxing entity and the rate of the tax. This
bill would amend Chapters 334 and 335 of the Local Government Code to
define false and misleading campaign material and provide for penalties
to be imposed by the Texas Ethics Commission for violations.
The bill would clarify that voter authorization of the Section 4B sales
and use tax does not prohibit a city from seeking voter approval for that
sales and use tax to be used for additional eligible projects. Further,
the bill removes the $135 million limit on bond proceeds payable in
whole or part from sales and use taxes that Section 4B cities can issue.
The bill would take effect September 1, 2001.
Local Government Impact
No significant fiscal implication to units of local government is
anticipated.
The expansion of the definition of venue will result in more projects
being eligible for types of financing under the Sports and Community
Venue Act.
The bill would increase the number of eligible uses of the municipal
hotel occupancy tax for the city of Grand Prairie.
Due to the way state and venue motor vehicle rental taxes are collected
and reported, and because rentals in venues comprise only a subset of
all motor vehicle rentals, it is not possible to estimate the number of
taxpayers that would remit the motor vehicle sales tax by the required
date and, therefore, be authorized to retain the 1 percent
reimbursement.
Source Agencies: 304 Comptroller of Public Accounts
LBB Staff: JK, RB, WP, GS