LEGISLATIVE BUDGET BOARD

Austin, Texas

FISCAL NOTE, 79TH LEGISLATIVE REGULAR SESSION

May 20, 2005

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

Estimated Two-year Net Impact to General Revenue Related Funds for HB1773, Committee Report 2nd House, Substituted: an impact of $0 through the biennium ending August 31, 2007.

General Revenue-Related Funds, Five-Year Impact:

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

All Funds, Five-Year Impact:

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

Fiscal Analysis

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. 

Methodology

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.

Local Government Impact

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

Source Agencies:

LBB Staff:

JOB, DLBa, SD