| TO: | Honorable Fred Hill, Chair, House Committee on Local Government Ways & Means |
| FROM: | John S. O'Brien, Director, Legislative Budget Board |
| IN RE: | HB1458 by Macias (Relating to the allocation of revenue from the state hotel tax for certain purposes in certain municipalities.), Committee Report 1st House, Substituted |
| Fiscal Year | Probable Net Positive/(Negative) Impact to General Revenue Related Funds |
|---|---|
| 2008 | ($40,000) |
| 2009 | ($41,000) |
| 2010 | ($43,000) |
| 2011 | ($44,000) |
| 2012 | ($46,000) |
| Fiscal Year | Probable Revenue Gain/(Loss) from GENERAL REVENUE FUND 1 |
Probable Revenue Gain/(Loss) from HOTEL OCCUP TAX DEPOS ACC 5003 |
Probable Revenue Gain/(Loss) from Eligible Counties |
|---|---|---|---|
| 2008 | ($36,667) | ($3,333) | $40,000 |
| 2009 | ($37,583) | ($3,417) | $41,000 |
| 2010 | ($39,417) | ($3,583) | $43,000 |
| 2011 | ($40,333) | ($3,667) | $44,000 |
| 2012 | ($42,167) | ($3,833) | $46,000 |
The bill would amend Chapter 156 of the Tax Code by adding a section relating to the allocation of revenue from the state hotel occupancy tax to clean and maintain rivers in certain municipalities located in a park and recreation district.
The bill would require the Comptroller of Public Accounts to issue to municipalities quarterly warrants up to two percent of the amount of revenue derived from the collection of hotel occupancy taxes received from hotels located in a municipality with the following qualifications: a population of less than 75,000; located in a county in which a park and recreation district had been created under Chapter 324 of the Local Government Code; and visited by more than 175,000 people who participated in recreational activities on state-owned rivers located within the boundaries of the municipality in the fiscal year of the municipality preceding the calendar year in which the municipality is to receive money under the provisions of the bill.
The Comptroller would be required to issue a warrant, no later than the last day of the month following a calendar quarter, that was drawn on general revenue for the lesser of two amounts: either the amount computed at two percent of the amount of revenue derived from collection of hotel occupancy tax, or the amount the municipality actually spent on removing trash and litter within the established guidelines of the bill.
The bill would require a municipality that received funds under this bill to use the money only to clean and maintain rivers within the boundaries of the municipality and to provide the Comptroller or Public Accounts with documentation sufficient to establish the number of tourist visitations and the amount of money spent on trash and litter removal.
The bill would take effect immediately if it receives two-thirds vote in each house; otherwise, it would take effect October 1, 2007.
The Comptroller of Public Accounts reports that under the provisions of the bill, currently only Comal County has a park and recreation district under Chapter 324 of the Local Government Code; and only New Braunfels would qualify for the allocation, but only if it could prove that more than 175,000 people participated in recreational activities on state-owned rivers located within the boundaries of the municipality.
The Comptroller reports that for the purposes of this fiscal note, the maximum amount of money that may be allocated to the municipalities was estimated, as the amount of money that would be spent by the municipalities on trash and litter removal cannot be estimated.
The Comptroller used data from its tax files on taxable hotel revenues from New Braunfels to determine the loss to the General Revenue Fund 0001 and the Hotel Occupancy Tax for Economic Development Account 5003 and the gain to the municipalities.
| Source Agencies: | 304 Comptroller of Public Accounts
|
| LBB Staff: | JOB, SD, CT, EB
|