LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 77th Regular Session May 7, 2001 TO: Honorable Frank Madla, Chair, Senate Committee on Intergovernmental Relations FROM: John Keel, Director, Legislative Budget Board IN RE: HB2756 by Ritter (Relating to the recording of expenditures of revenue from the county hotel occupancy tax.), As Engrossed ************************************************************************** * No fiscal implication to the State is anticipated. * ************************************************************************** The bill would amend Chapter 352 of the Tax Code to require a county that levies a hotel occupancy tax to maintain a record identifying the receipt and expenditure of the tax revenue. A county or entity that spent revenue from the tax would have to, before making an expenditure, list each activity that was directly funded by the tax or is offered by an entity that has its administrative costs funded wholly or partly by the tax and that directly promoted tourism and hotel and convention activity. If the commissioners court of the county delegated to another entity the management of an activity funded by the tax, each entity ultimately funded would have to list each activity that was directly funded by the tax or is offered by an entity that has its administrative costs funded wholly or partly by the tax and that directly promoted tourism and hotel and convention activity. For the purposes of the distribution of local hotel occupancy tax revenue in this legislation, all expenditures for a sports and community venue project and related infrastructure are considered a single scheduled activity of event. This bill would not affect authorized rates or the tax basis specified under Chapter 352. Therefore, there would be no fiscal impact to the state. This bill would take effect September 1, 2001. Local Government Impact No significant fiscal implication to units of local government is anticipated. Source Agencies: 304 Comptroller of Public Accounts LBB Staff: JK, DB, SD