LEGISLATIVE BUDGET BOARD 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 anticipated. Source Agencies: 304 Comptroller of Public Accounts LBB Staff: JK, SD, DB