| TO: | Honorable Fred Hill, Chair, House Committee on Local Government Ways and Means |
| FROM: | John Keel, Director, Legislative Budget Board |
| IN RE: | SB234 by Fraser (Relating to the authority of certain counties bordering Lake Buchanan to impose a hotel occupancy tax.), As Engrossed |
| Fiscal Year | Probable Net Positive/(Negative) Impact to General Revenue Related Funds |
|---|---|
| 2004 | $0 |
| 2005 | $0 |
| 2006 | $0 |
| 2007 | $0 |
| 2008 | $0 |
| Fiscal Year | Probable Revenue Gain/(Loss) fromCounty of Burnet |
|---|---|
| 2004 | $101,000 |
| 2005 | $102,000 |
| 2006 | $104,000 |
| 2007 | $107,000 |
| 2008 | $112,000 |
The bill would amend Section 352.002(a) of the Tax Code to authorize a county that has a population of 34,000 or more and borders Lake Buchanan to, by the adoption of a resolution or an order, impose a hotel occupancy tax. The tax could not be imposed on a hotel located in a municipality in the county that currently imposes a municipal hotel occupancy tax.
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, 2003.
Burnet County would be the only county authorized by the bill's provisions to impose a hotel occupancy tax. The municipalities of Burnet, Marble Falls, and Granite Shoals are located in Burnet County and impose a local hotel occupancy tax. Data on hotel occupancy tax revenues for Burnet County and the municipalities of Burnet, Marble Falls, and Granite Shoals were obtained from Comptroller tax files. There would be no effect on state hotel occupancy tax revenues.
The above table assumes the maximum seven percent tax rate.
| Source Agencies: | 304 Comptroller of Public Accounts
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| LBB Staff: | JK, DLBa, WP, SD
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