| TO: | Honorable Rene Oliveira, Chair, House Committee on Ways & Means |
| FROM: | John S. O'Brien, Director, Legislative Budget Board |
| IN RE: | HB3669 by Hopson (Relating to the authority of certain counties to impose a hotel occupancy tax.), As Introduced |
| Fiscal Year | Probable Net Positive/(Negative) Impact to General Revenue Related Funds |
|---|---|
| 2010 | $0 |
| 2011 | $0 |
| 2012 | $0 |
| 2013 | $0 |
| 2014 | $0 |
| Fiscal Year | Probable Revenue Gain/(Loss) from Houston County |
|---|---|
| 2010 | $168,000 |
| 2011 | $194,000 |
| 2012 | $203,000 |
| 2013 | $213,000 |
| 2014 | $224,000 |
The bill would amend Chapter 352 of the Tax Code, regarding the county hotel occupancy tax.
Under the provisions of the bill, a county that is bordered by the Neches and Trinity Rivers, partially containing the Davy Crockett National Forest, and with a population greater than 20,000 would be allowed to impose a hotel occupancy tax.
The bill would take effect immediately upon enactment, assuming it receives two-thirds majority vote in each house. Otherwise, it would take effect September 1, 2009.
Based on ghe population and geographical limitations outlined, the bill would affect only Houston County.
To estimate the potential maximum fiscal impact of this bill, data on taxable hotel receipts for Houston County were gathered from Comptroller tax files, which were then multiplied by 7 percent (the maximum rate should this bill become law). The fiscal impact was then adjusted for the bill's effective date and extrapolated through 2014.
The fiscal implications cannot be determined, as the tax rate that might be set by the county and the timing for the imposition of this tax are unknown. For the purpose of this analysis, the following illustrative table shows the fiscal impact should Houston County adopt the maximum 7 percent county hotel occupancy tax rate at the earliest date permissible.
| Source Agencies: | 304 Comptroller of Public Accounts
|
| LBB Staff: | JOB, MN, SD, DB
|