TO: | Honorable Fred Hill, Chair, House Committee on Local Government Ways & Means |
FROM: | John S. O'Brien, Director, Legislative Budget Board |
IN RE: | HB3664 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 |
---|---|
2008 | $0 |
2009 | $0 |
2010 | $0 |
2011 | $0 |
2012 | $0 |
Fiscal Year | Probable Revenue Gain/(Loss) from Madison County |
---|---|
2008 | $110,000 |
2009 | $115,000 |
2010 | $119,000 |
2011 | $123,000 |
2012 | $127,000 |
The bill would amend Chapter 352 of the Tax Code, relating to the authority of certain counties to impose a county hotel occupancy tax with voter approval. Under the provisions of the bill, a county with a population of less than 15,000 and that is bordered by the Trinity and Navasota Rivers would be allowed to charge a hotel occupancy tax; however, the tax would have to be authorized by the commissioners court of that county and by a vote of the registered voters of that county.
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 Madison County would meet the criteria established under the provisions of the bill.
Currently, unless otherwise specified, a county authorized to impose a county hotel occupancy tax may not impose the tax at a rate greater than seven percent. For the purpose of this estimate, the Comptroller gathered data on taxable hotel receipts from Madison County from its tax files, and multiplied the receipts by the seven percent rate to estimate the potential maximum gain to the county.
It is not known whether Madison County would approve a county hotel occupancy tax or at what rate. For the purpose of this estimate it is assumed that Madison County would adopt a county hotel occupancy tax at the maximum rate authorized by the bill.
Source Agencies: | 304 Comptroller of Public Accounts
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LBB Staff: | JOB, CT, SD, EB
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