| TO: | Honorable Fred Hill, Chair, House Committee on Local Government Ways & Means |
| FROM: | John S. O'Brien, Director, Legislative Budget Board |
| IN RE: | HB1820 by Hamilton (Relating to the authority to impose a county hotel occupancy tax and to the maximum rate of the tax.), As Introduced |
| 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 Orange County |
|---|---|
| 2008 | $171,000 |
| 2009 | $178,000 |
| 2010 | $185,000 |
| 2011 | $191,000 |
| 2012 | $198,000 |
The bill would amend Section 352.002 of the Tax Code, relating to the authority of certain counties to impose a county hotel occupancy tax. Under the provisions of the bill, any county that borders or contains a portion of the Neches River, the Sabine River, and Sabine Lake would be allowed to impose a county hotel occupancy tax; however, the allowable rate for the county hotel occupancy tax would be capped at 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, only Orange County would meet the criteria established under the provisions of the bill.
For the purpose of this estimate, the Comptroller gathered data on taxable hotel receipts from Orange County from its tax files, and multiplied the receipts by the two percent maximum tax rate to estimate the potential maximum gain to the county.
It is not known whether Orange County would approve a county hotel occupancy tax or at what rate. For the purpose of this estimate it is assumed that the county 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, CT, SD, EB
|