LEGISLATIVE BUDGET BOARD

Austin, Texas

FISCAL NOTE, 83RD LEGISLATIVE REGULAR SESSION

April 24, 2013

TO:	Honorable Harvey Hilderbran, Chair, House Committee on Ways & Means
FROM:	Ursula Parks, Director, Legislative Budget Board
IN RE:	HB1724 by Bohac (relating to the statute of limitations on municipal and county hotel occupancy taxes and interest on delinquent payments of municipal hotel occupancy taxes.), Committee Report 1st House, Substituted

No fiscal implication to the State is anticipated.

The bill would amend Chapters 351 and 352 of the Tax Code, regarding the municipal and county hotel occupancy taxes.

The bill would require a municipality or county to bring suit for failure to pay taxes due under these chapters no later than the fourth anniversary of the date the tax becomes due. A municipality or county would be allowed to bring suit at any time if the taxpayer files a false or fraudulent report with the intent to evade tax, or if the taxpayer has not filed a report for the tax with the municipality or county.

The bill would add new Section 351.0042 to make a person who fails to pay a tax due under this chapter liable to the municipality for interest at the rate provided by Section 111.060(b) of the Tax Code on the unpaid amount. 
 
The bill would take effect September 1, 2013.    

Local Government Impact

There could be an indeterminate fiscal impact to units of local government from the provisions of the bill.

Source Agencies:

304 Comptroller of Public Accounts

LBB Staff:

UP, KK, SD, AG