Austin, Texas
                    FISCAL NOTE, 77th Regular Session
                              April 18, 2001
          TO:  Honorable Frank Madla, Chair, Senate Committee on
               Intergovernmental Relations
        FROM:  John Keel, Director, Legislative Budget Board
       IN RE:  SB1315  by Staples (Relating to the use of revenue from
               the municipal hotel occupancy tax.), Committee Report 1st
               House, Substituted
*  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, 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, DB, SD