LEGISLATIVE BUDGET BOARD

Austin, Texas

FISCAL NOTE, 81ST LEGISLATIVE REGULAR SESSION

April 22, 2009

TO:	Honorable Steve Ogden, Chair, Senate Committee on Finance
FROM:	John S. O'Brien, Director, Legislative Budget Board
IN RE:	SB1859 by Jackson, Mike (Relating to the exemption from the sales and use tax of boat slip rental fees charged at certain marinas severely damaged by Hurricane Ike.), As Introduced

Depending upon the number of private clubs with extensive damage due to Hurricane Ike, there could be an indeterminate amount of revenue loss to the state.

The bill would amend Chapter 151 of the Tax Code, regarding the sales tax, to create a sales tax exemption for boat slip rental fees if the fees are charged by a private club located in a county with a population of more than 3 million and the marina at which the boat slips are rented sustained at least $1 million in damage from Hurricane Ike.

Based on the population requirements, the bill would apply only to boat slip rental fees at clubs in Harris County.  The Comptroller has indicated that the number of clubs with marinas that sustained at least $1 million in damage from Hurricane Ike are not known.  Therefore the amount of revenue loss that would result from the bill cannot be estimated.

The bill would take effect July 1, 2009, assuming that it received the requisite two-thirds majority votes in both houses of the Legislature. Otherwise, it would take effect September 1, 2009.

Local Government Impact

The amount of revenue loss to units of local government cannot be estimated.

Source Agencies:

304 Comptroller of Public Accounts

LBB Staff:

JOB, MN, SD, KK