LEGISLATIVE BUDGET BOARD

                              Austin, Texas

                    FISCAL NOTE, 77th Regular Session

                            February 15, 2001

          TO:  Honorable Frank Madla, Chair, Senate Committee on

               Intergovernmental Relations

        FROM:  John Keel, Director, Legislative Budget Board

       IN RE:  SB528  by Sibley (Relating to the recording of

               expenditures of 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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The bill would require a municipality or entity funded by the municipal

hotel occupancy tax to list scheduled activities or events funded by the

tax that will directly promote tourism and convention and hotel activity.

The city or entity would have to list the activity or event before

making an expenditure of the tax proceeds.  If a city delegates the

management or supervision of the tax to another entity, then each entity

that would ultimately be funded by the tax must generate the list.  A

municipality or entity would be able to add items to its list of hotel

occupancy tax funded activities at any time.  The list would be provided

to the city secretary or the official custodian of records for the city.

Current law requires the municipal hotel occupancy tax to be used to

directly promote tourism and the convention and hotel industry.

Additionally, municipalities and entities must maintain records that

identify the receipt and expenditure of all revenue derived from the tax.

Current law does not require that the funded entities indicate which of

their hotel occupancy tax funded programs or activities directly promote

tourism and convention and hotel industry.

The bill would take effect September 1, 2001.

Local Government Impact

No significant fiscal implication to units of local government is

anticipated.

Local government entities would experience a small administrative cost

for preparing, maintaining, and submitting lists of how hotel occupancy

taxes were used.

Source Agencies:  

LBB Staff:         JK, DB