LEGISLATIVE BUDGET BOARD
                              Austin, Texas
                                     
                    FISCAL NOTE, 77th Regular Session
  
                              March 29, 2001
  
  
          TO:  Honorable Rene Oliveira, Chair, House Committee on Ways &
               Means
  
        FROM:  John Keel, Director, Legislative Budget Board
  
       IN RE:  HB2758  by Ritter (Relating to the authority of certain
               counties to impose a hotel occupancy tax and to the rate
               of the tax.), As Introduced
  
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*  No fiscal implication to the State is anticipated                     *
**************************************************************************
  
The following table assumes an effective date of June 1, 2001.
  
All Funds, Five-Year Impact:
  
         *****************************************************
         * Fiscal Year    Probable Revenue Gain/(Loss) from   *
         *                        Affected Counties           *
         *      2001                                 $120,000 *
         *      2002                                  765,000 *
         *      2003                                  829,000 *
         *      2004                                  898,000 *
         *      2005                                  972,000 *
         *      2006                                1,053,000 *
         *****************************************************
  
The following table assumes an effective date of September 1, 2001.
  
         *****************************************************
         * Fiscal Year    Probable Revenue Gain/(Loss) from   *
         *                        Affected Counties           *
         *      2002                                 $701,000 *
         *      2003                                  829,000 *
         *      2004                                  898,000 *
         *      2005                                  972,000 *
         *      2006                                1,053,000 *
         *****************************************************
  
Fiscal Analysis
  
The bill would amend Section 352.002(d) of the Tax Code to provide that a
county, authorized to impose a hotel occupancy tax, that borders the
Republic of Mexico and in which there is located a national park of more
than 400,000 acres may not apply the tax to a hotel located in a
municipality that imposes the tax under Chapter 351.  This section
applies to Brewster County.

The bill would establish that the prohibition in Section 352.002(d) would
not apply to a county with a population of more than 200,000 and
bordering the Neches River.

The bill would specify that a county that borders the Gulf of Mexico, has
a population of more than 200,000, and borders the Neches River could
not levy a hotel occupancy tax of more than 2 percent of the price paid
for a room in the county.  This section applies to Jefferson County.

This bill would take effect immediately upon enactment, assuming that it
received the requisite two-thirds majority votes in both houses of the
Legislature.  Otherwise, it would take effect September 1, 2001.
  
  
Methodology
  
Data on hotel occupancy revenues for the counties that would be affected
by the 2 percent hotel occupancy tax rate limitation were obtained from
Comptroller tax files.  There would be no effect on state hotel
occupancy tax revenues.
  
  
Local Government Impact
  
The fiscal impact to local units of government is reflected in the table
above.
  
  
Source Agencies:   304   Comptroller of Public Accounts
LBB Staff:         JK, SD