LEGISLATIVE BUDGET BOARD
Austin, Texas
 
FISCAL NOTE, 79TH LEGISLATURE 2nd CALLED SESSION - 2005
 
July 26, 2005

TO:
Honorable Frank Madla, Chair, Senate Committee on Intergovernmental Relations
 
FROM:
John S. O'Brien, Deputy Director, Legislative Budget Board
 
IN RE:
SB29 by Seliger (Relating to the authority of certain counties to impose a hotel occupancy tax.), As Introduced



Estimated Two-year Net Impact to General Revenue Related Funds for SB29, As Introduced: an impact of $0 through the biennium ending August 31, 2007.



Fiscal Year Probable Net Positive/(Negative) Impact to General Revenue Related Funds
2006 $0
2007 $0
2008 $0
2009 $0
2010 $0




Fiscal Year Probable Revenue Gain/(Loss) from
Midland County
2006 $349,000
2007 $365,000
2008 $0
2009 $0
2010 $0

Fiscal Analysis

The bill would amend Section 352.002 of the Tax Code by adding subsections relating to the authority of certain counties to impose a hotel occupancy tax.

The bill would allow a county in which the entire border is located within 250 miles of New Mexico to impose a hotel occupancy tax. The county would have to have a population of more than 100,000 and include one municipality with a population of more than 90,000 but less than 120,000, and it would have to include within its borders an international airport.

The county could, by the adoption of an order or resolution, impose a hotel occupancy tax of no more than two percent of the price of a hotel room.

The subsections enacted by the bill would expire September 1, 2007. The bill would take effect immediately if it receives the required two-thirds vote in both houses; otherwise, it would take effect the 91st day after the last day of the legislative session.


Methodology

Midland County is the only county that would qualify to impose a hotel occupancy tax under this bill.

It is not known whether Midland County would impose a hotel tax, or at what rate the county might impose that tax. The following table is for illustrative purposes only and reflects the potential revenues at the maximum tax rate allowable by the bill, two percent.

The gross taxable receipts data were derived from the Comptroller tax files and multiplied by two percent to arrive at the maximum potential fiscal impact. Because the provisions of the bill would expire September 1, 2007, there could be no fiscal impact in fiscal year 2008 and beyond.


Local Government Impact

The fiscal impact to units of local government is illustrated in the above tables.


Source Agencies:
304 Comptroller of Public Accounts
LBB Staff:
JOB, DLBa, WP, SD