| TO: | Honorable Tom Craddick, Speaker of the House, House of Representatives |
| FROM: | John S. O'Brien, Director, Legislative Budget Board |
| IN RE: | HB1669 by Cook, Robby (Relating to the authority of certain counties to impose a county hotel occupancy tax and to the rate of the tax.), As Passed 2nd House |
| Fiscal Year | Probable Net Positive/(Negative) Impact to General Revenue Related Funds |
|---|---|
| 2008 | $0 |
| 2009 | $0 |
| 2010 | $0 |
| 2011 | $0 |
| 2012 | $0 |
| Fiscal Year | Probable Revenue Gain/(Loss) from Burelson County |
Probable Revenue Gain/(Loss) from Robertson County |
Probable Revenue Gain/(Loss) from Leon County |
Probable Revenue Gain/(Loss) from Madison County |
|---|---|---|---|---|
| 2008 | $26,000 | $38,000 | $86,000 | $32,000 |
| 2009 | $27,000 | $40,000 | $89,000 | $33,000 |
| 2010 | $28,000 | $41,000 | $93,000 | $34,000 |
| 2011 | $29,000 | $43,000 | $96,000 | $35,000 |
| 2012 | $30,000 | $44,000 | $99,000 | $36,000 |
The bill would amend Chapter 352 of the Tax Code relating to the authority of certain counties to impose a county hotel occupancy tax and to the rate of the tax.
The bill would allow a county that has a population of 16,000 or more and borders the entire north shore of Lake Somerville to impose a county hotel occupancy tax, not exceeding a tax rate of two percent.
The bill would allow a county with a population of less than 20,000 and that is bordered by the Brazos and Navasota Rivers to charge a hotel occupancy tax, not exceeding a tax rate of two percent.
The bill would allow a county with a population of more than 15,000 and less than 20,000 and that is located on the Trinity and Navasota Rivers to charge a hotel occupancy tax, not exceeding a tax rate of two percent.
The bill would allow a county with a population of less than 15,000 and that is bordered by the Trinity and Navasota Rivers to charge a hotel occupancy tax, not exceeding a tax rate of two percent.
The bill would take effect immediately upon enactment if it receives two-thirds vote in each house; otherwise, it would take effect September 1, 2007.
According to the Comptroller of Public Accounts, there are four counties that would meet the criteria in the bill: Burleson, Robertson, Leon, and Madison.
For the purpose of this estimate, the Comptroller gathered data on taxable hotel receipts from the four counties from its tax files, and multiplied the receipts by the two percent maximum tax rate authorized by the bill to determine the maximum possible gain to each county.
The Comptroller reports that it is not known whether any of the four counties would approve a county hotel occupancy tax or at what rate. For the purpose of this estimate, it is assumed that the counties would adopt a county hotel occupancy tax at the maximum rate authorized by the bill.
| Source Agencies: | 304 Comptroller of Public Accounts
|
| LBB Staff: | JOB, DB, CT, SD, EB
|