| TO: | Honorable Ron Wilson, Chair, House Committee on Ways & Means |
| FROM: | John Keel, Director, Legislative Budget Board |
| IN RE: | HB1827 by Casteel (Relating to the allocation of revenue from the state hotel tax for certain purposes in certain municipalities located in counties in a park and recreation district.), Committee Report 1st House, Substituted |
| Fiscal Year | Probable Net Positive/(Negative) Impact to General Revenue Related Funds |
|---|---|
| 2004 | ($159,000) |
| 2005 | ($175,000) |
| 2006 | ($178,000) |
| 2007 | ($184,000) |
| 2008 | ($192,000) |
| Fiscal Year | Probable Revenue Gain/(Loss) from GENERAL REVENUE FUND 1 |
Probable Revenue Gain/(Loss) from Eligible Municipalities |
|---|---|---|
| 2004 | ($159,000) | $159,000 |
| 2005 | ($175,000) | $175,000 |
| 2006 | ($178,000) | $178,000 |
| 2007 | ($184,000) | $184,000 |
| 2008 | ($192,000) | $192,000 |
The bill would amend Chapter 156 of the Tax Code, relating to the allocation of certain revenue from the state hotel occupancy tax.
The bill would require the Comptroller to compute and issue quarterly warrants equivalent to a portion of the state hotel occupancy tax collections, computed at a rate of 1 percent, from certain municipalities located in counties in which a park and recreation district had been created back to those municipalities. To qualify, a municipality would have to a population of more than 35,000.
The Comptroller would be required to make the computation and issue the warrants no later than the last day of the month following a calendar quarter.
A municipality that received funds under this bill could only use the money to clean and maintain rivers within its borders.
The bill would take effect October 1, 2003.
Based on the bill's eligibility requirements, and assuming Comal County continues to have a district under Chapter 324 of the Local Government Code, the municipality of New Braunfels would be the only city currently eligible to receive payments of state hotel tax revenues to be used to clean and maintain rivers within its borders.
Data on taxable hotel revenues from New Braunfels were gathered from Comptroller tax files. Taxable revenues were multiplied by the one percent rate required to be returned to the municipality to determine the loss to General Revenue Fund 0001 and the gain to the municipality of New Braunfels.
| Source Agencies: | 304 Comptroller of Public Accounts
|