| TO: | Honorable Mike Jackson, Chair, Senate Committee on Economic Development |
| FROM: | John S O'Brien, Director, Legislative Budget Board |
| IN RE: | HB3341 by Anchia (Relating to the rebate, refund, or payment of tax proceeds to a qualified hotel project.), As Engrossed |
The bill would amend Chapter 2303 of the Government Code, regarding enterprise zones, to create the
Qualified Hotel Project Trust Account as a suspense account outside the treasury, and require the
Comptroller to deposit eligible taxable proceeds collected or paid by a qualified hotel project into the
new account. Monies in the account would be used, without an appropriation, to rebate, refund or pay
qualified projects the eligible taxable proceeds to which they are entitled.
Currently, the state refunds state hotel taxes and state sales and use taxes to qualified hotel projects. In fiscal year 2010 those refunds totaled $8.9 million. If this bill became law, the taxable proceeds would be deposited in the new fund outside of the treasury and not to General Revenue Fund 0001.
This legislation would create or recreate a dedicated account in the General Revenue Fund, create or recreate a special or trust fund either with or outside of the Treasury, or create a dedicated revenue source. The fund, account, or revenue dedication included in this bill would be subject to funds consolidation review by the current Legislature.
The bill would take effect September 1, 2011.
| Source Agencies: | 304 Comptroller of Public Accounts
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| LBB Staff: | JOB, KK, SD, AG
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