| TO: | Honorable Fred Hill, Chair, House Committee on Local Government Ways & Means |
| FROM: | John S. O'Brien, Deputy Director, Legislative Budget Board |
| IN RE: | HB3351 by Dunnam (Relating to the authority of certain counties to impose a county hotel occupancy tax with voter approval.), As Introduced |
| 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 Grimes County |
Probable Revenue Gain/(Loss) from Robertson County |
|---|---|---|
| 2006 | $75,000 | $80,000 |
| 2007 | $78,000 | $83,000 |
| 2008 | $81,000 | $87,000 |
| 2009 | $85,000 | $91,000 |
| 2010 | $89,000 | $95,000 |
The bill would amend Chapter 352 of the Tax Code, relating to the authority of certain counties to impose a hotel occupancy tax.
The bill would authorize any county with a population of 50,000 or less and located on both the Brazos and Navasota Rivers to impose, subject to voter approval, a hotel occupancy tax. The tax rate could not exceed the rate authorized by Section 352.003(a).
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, 2005.
Two counties would meet the criteria established by this bill: Grimes County and Robertson County.
Currently, unless otherwise specified, counties authorized to impose a county hotel occupancy tax may not impose the tax at greater than seven percent. Data on taxable hotel receipts from Grimes County and Robertson County were gathered from Comptroller tax files. Receipts were multiplied by the seven percent rate to estimate the potential maximum gain if both counties were to impose the maximum tax rate.
| Source Agencies: | 304 Comptroller of Public Accounts
|
| LBB Staff: | JOB, WP, SD
|