BILL ANALYSIS

Senate Research Center                                                                                                      S.B. 1571

79R1385 KLA-D                                                                                                           By: Williams

Finance

3/30/2005

As Filed

AUTHOR'S/SPONSOR'S STATEMENT OF INTENT

Currently, businesses and individuals who occupy a hotel room for 30 or more consecutive days are considered permanent residents and are exempt from the state hotel occupancy tax of six percent.  The state forfeits $6.4 million in general revenue per year as a result of this tax exemption.

As proposed, S.B. 1571 eliminates the permanent residency exception to the hotel occupancy tax.  This bill is a Legislative Budget Board performance recommendation and its savings of $13 million in the 2006-2007 biennium are assumed in S.B. 1. 

RULEMAKING AUTHORITY

This bill does not expressly grant any additional rulemaking authority to a state officer, institution, or agency.

SECTION BY SECTION ANALYSIS

SECTION 1.  Repealer:  Sections 156.101 (Exception--Permanent Resident), 351.002(c) (relating to hotel occupancy tax exemptions for permanent residents), and 352.002(c) (relating to hotel occupancy tax exemptions for permanent residents), Tax Code.

SECTION 2.  Effective date:  September 1, 2005.