Austin, Texas
                    FISCAL NOTE, 77th Regular Session
                               May 24, 2001
          TO:  Honorable Bill Ratliff, Lieutenant Governor,  Senate
        FROM:  John Keel, Director, Legislative Budget Board
       IN RE:  SB1315  by Staples (Relating to the use of revenue from
               the municipal hotel occupancy tax.), As Passed 2nd House
*  No fiscal implication to the State is anticipated.                    *
The bill would amend Chapter 351 of the Tax Code to allow revenue from
the municipal hotel occupancy tax to be used for the expenses for a
municipality located in a county with a population of 65,000 or less,
including promotion expenses, directly related to a sporting event in
which the majority of participants are tourists who substantially
increase economic activity at hotels and motels within the municipality
or its vicinity.

Under current law, revenue from the municipal hotel occupancy tax may be
used for certain purposes only, including:  promotion of tourism and
acquisition of sites for construction of convention center facilities or
visitor information centers; furnishing of facilities, personnel, and
materials for the registration of convention delegates or registrants; or
advertising and conducting solicitations and promotional programs to
attract tourists and convention delegates. 

The 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.
Local Government Impact
No significant fiscal implication to units of local government is
Source Agencies:   304   Comptroller of Public Accounts
LBB Staff:         JK, SD, DB