LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 77th Regular Session
March 6, 2001
TO: Honorable Frank Madla, Chair, Senate Committee on
Intergovernmental Relations
FROM: John Keel, Director, Legislative Budget Board
IN RE: SB825 by Truan (Relating to the allocation of state
hotel occupancy tax revenue to certain municipalities.),
As Introduced
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* Estimated Two-year Net Impact to General Revenue Related Funds for *
* SB825, As Introduced: negative impact of $(2,242,167) through the *
* biennium ending August 31, 2003. *
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General Revenue-Related Funds, Five-Year Impact:
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* Fiscal Year Probable Net Positive/(Negative) *
* Impact to General Revenue Related *
* Funds *
* 2002 $(1,076,167) *
* 2003 (1,166,000) *
* 2004 (1,263,167) *
* 2005 (1,368,583) *
* 2006 (1,482,250) *
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All Funds, Five-Year Impact:
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*Fiscal Probable Revenue Probable Revenue Probable Revenue *
* Year Gain/(Loss) to Gain/(Loss) from Gain/(Loss) from *
* General Revenue Fund Hotel Occupancy Tax Cities *
* 0001 Deposits Account *
* 5003 *
* 2002 $(1,076,167) $(97,833) $1,174,000 *
* 2003 (1,166,000) (106,000) 1,272,000 *
* 2004 (1,263,167) (114,833) 1,378,000 *
* 2005 (1,368,583) (124,417) 1,493,000 *
* 2006 (1,482,250) (134,750) 1,617,000 *
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Fiscal Analysis
The bill would amend Chapter 156 of the Tax Code to require the
Comptroller to submit quarterly payments of state hotel occupancy tax
collections, computed at a rate of 1 percent, originating from certain
coastal municipalities to those entities.
The coastal municipalities would be defined as those general-law or
home-rule municipalities bordering on the Gulf of Mexico, located wholly
or partly on a barrier island or having boundaries within 30 miles of the
United Mexican States, and not eligible to receive an allocation under
Section 156.2511 of the Tax Code. The eligible municipalities are Corpus
Christi, Port Aransas and Jamaica Beach.
The bill would take effect September 1, 2001.
Methodology
Under current law, certain general-law municipalities with a population
of less than 5,000 are eligible to receive a portion of the state hotel
occupancy tax generated within their boundaries. Home-rule
municipalities, however, are not eligible for the such payments.
Data on hotel occupancy revenues for the municipalities that would
qualify for the payments under the bill were obtained from Comptroller
tax files. The revenues were adjusted to a 1 percent rate to determine
the estimated loss to the General Revenue Fund 0001 and to the
Department of Economic Development Account 5003 and the corresponding
gain to municipalities.
Local Government Impact
Local units of government would have a corresponding fiscal impact from
state hotel occupancy tax revenues, as indicated in the table above.
Source Agencies: 304 Comptroller of Public Accounts
LBB Staff: JK, DB, SD, SM