LEGISLATIVE BUDGET BOARD

Austin, Texas

FISCAL NOTE, 83RD LEGISLATIVE REGULAR SESSION

April 5, 2013

TO:	Honorable Harvey Hilderbran, Chair, House Committee on Ways & Means
FROM:	Ursula Parks, Director, Legislative Budget Board
IN RE:	HB1279 by Lozano (Relating to the use of hotel occupancy tax revenue in certain municipalities and counties.), As Introduced

No fiscal implication to the State is anticipated.

The bill would amend Chapter 351 of the Tax Code, regarding municipal hotel occupancy taxes, to authorize a municipality located in a county with a population less than 50,000, through which the Aransas River flows, and that has a municipality with a population of more than 10,000, to use all or any portion of the revenue from its municipal hotel occupancy tax for projects to maintain and improve critical infrastructure in the municipality.
 
The bill would amend Chapter 352 of the Tax Code, regarding county municipal occupancy taxes, to allow a county with a population of less than 50,000, through which the Aransas River flows, that has a municipality with a population of more than 10,000, and that is authorized to impose a tax under this chapter to use all or any portion of the revenue from its county municipal occupancy tax to maintain and improve critical infrastructure in the county.

The bill would take effect immediately upon receiving two-thirds majority vote in each house.
Otherwise, the bill would take effect September 1, 2013.

Local Government Impact

Based on the population and geographical limitations set forth by the bill, Beeville and Bee County would be the only eligible municipality and county.  For an applicable municipality or county an additional usage of hotel occupancy tax revenue would have no direct fiscal impact, although indirectly, it could create a savings if another revenue source had been used for this purpose.

Source Agencies:

304 Comptroller of Public Accounts

LBB Staff:

UP, KK, SD, AG