LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 77th Regular Session April 4, 2001 TO: Honorable Frank Madla, Chair, Senate Committee on Intergovernmental Relations FROM: John Keel, Director, Legislative Budget Board IN RE: SB1393 by Bernsen (Relating to the authority of certain counties to impose a hotel occupancy tax and to the rate of the tax.), As Introduced ************************************************************************** * No fiscal implication to the State is anticipated * ************************************************************************** The following table assumes an effective date of June 1, 2001. All Funds, Five-Year Impact: ***************************************************** * Fiscal Year Probable Revenue Gain/(Loss) from * * Affected Counties * * 2001 $120,000 * * 2002 765,000 * * 2003 829,000 * * 2004 898,000 * * 2005 972,000 * * 2006 1,053,000 * ***************************************************** The following table assumes an effective date of September 1, 2001. ***************************************************** * Fiscal Year Probable Revenue Gain/(Loss) from * * Affected Counties * * 2002 $701,000 * * 2003 829,000 * * 2004 898,000 * * 2005 972,000 * * 2006 1,053,000 * ***************************************************** Fiscal Analysis The bill would amend Section 352.002(d) of the Tax Code to provide that a county, authorized to impose a hotel occupancy tax, that borders the Republic of Mexico and in which there is located a national park of more than 400,000 acres may not apply the tax to a hotel located in a municipality that imposes the tax under Chapter 351. This section applies to Brewster County. The bill would establish that the prohibition in Section 352.002(d) would not apply to a county with a population of more than 200,000 and bordering the Neches River. The bill would specify that a county that borders the Gulf of Mexico, has a population of more than 200,000, and borders the Neches River could not levy a hotel occupancy tax of more than 2 percent of the price paid for a room in the county. This section applies to Jefferson County. This 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. Methodology Data on hotel occupancy revenues for the counties that would be affected by the 2 percent hotel occupancy tax rate limitation were obtained from Comptroller tax files. There would be no effect on state hotel occupancy tax revenues. Local Government Impact The fiscal impact to local units of government is reflected in the table above. Source Agencies: 304 Comptroller of Public Accounts LBB Staff: JK, SD