TO: | Honorable Frank Madla, Chair, Senate Committee on Intergovernmental Relations |
FROM: | John S. O'Brien, Deputy Director, Legislative Budget Board |
IN RE: | HB1773 by Miller (Relating to the authority of certain counties to impose a hotel occupancy tax and to the use of that tax revenue. ), Committee Report 2nd House, Substituted |
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 Bosque County |
Probable Revenue Gain/(Loss) from Hill County |
---|---|---|
2006 | $148,000 | $465,000 |
2007 | $155,000 | $485,000 |
2008 | $162,000 | $507,000 |
2009 | $169,000 | $530,000 |
2010 | $176,000 | $553,000 |
The bill would amend Section 352.002(a) of the Tax Code to re-number the last three counties authorized to implement a county hotel occupancy tax. It also allows a county that borders Whitney Lake to impose a hotel occupancy tax and directs the use of that tax revenue.
The bill would amend Section 352.002(d) and add a subsection to the Tax Code to change which counties authorized by Section 352.002(a) to implement a county hotel occupancy tax would not be authorized to apply the tax if the hotel were located in a municipality imposing a tax under Chapter 351.
The bill would allow the counties of Bosque and Hill to apply a county hotel occupancy tax, but would not allow a hotel located in a municipality to charge a hotel tax if the hotel was located in Bosque County or Hill County.
Currently, unless otherwise specified, counties authorized to impose a county hotel occupancy tax may not impose the tax at greater than 7 percent. Data on taxable hotel receipts from Bosque and Hill counties were gathered from Comptroller tax files. Receipts were multiplied by the 7 percent rate to estimate the potential maximum gain to Bosque and Hill counties.
The following assumes that both Bosque County and Hill County would adopt a county hotel occupancy tax at the maximum rate authorized by the bill. The table is for illustrative purposes only and shows what could happen if the applicable counties were to adopt a hotel occupancy tax at the maximum allowable rate.
Source Agencies: |
LBB Staff: | JOB, DLBa, SD
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