Honorable Harvey Hilderbran, Chair, House Committee on Ways & Means
FROM:
Ursula Parks, Director, Legislative Budget Board
IN RE:
HB3042 by Oliveira (relating to the allocation of state hotel occupancy tax revenue to certain municipalities for cleaning and maintenance of and erosion control for public beaches.), Committee Report 1st House, Substituted
Estimated Two-year Net Impact to General Revenue Related Funds for HB3042, Committee Report 1st House, Substituted: a negative impact of ($1,537,000) through the biennium ending August 31, 2015.
Fiscal Year
Probable Net Positive/(Negative) Impact to General Revenue Related Funds
2014
($717,000)
2015
($820,000)
2016
($860,000)
2017
($903,000)
2018
($948,000)
Fiscal Year
Probable Revenue Gain/(Loss) from General Revenue Fund 1
Probable Revenue Gain/(Loss) from City of South Padre Island
2014
($717,000)
$717,000
2015
($820,000)
$820,000
2016
($860,000)
$860,000
2017
($903,000)
$903,000
2018
($948,000)
$948,000
Fiscal Analysis
The bill would amend Chapter 156 of the Tax Code, regarding the hotel occupancy tax.
The bill would direct the Comptroller to issue a warrant drawn on General Revenue Fund 0001, in an amount equal to 2 percent of the revenues derived from the state hotel occupancy tax from hotels located in a municipality described by Section 156.2512(c)(1)(C)(iii) as added by this bill, to that municipality. That warrant would be in place of the warrant that municipality currently receives for 1 percent from those revenues.
The bill would take effect September 1, 2013.
Methodology
The bill's provisions would apply to the City of South Padre Island. Data on taxable hotel receipts for South Padre Island were gathered from Comptroller tax files, which were then multiplied by 1 percent to estimate the bill's fiscal impact. The fiscal impact was then adjusted for the bill's effective date and extrapolated through 2018.
Local Government Impact
The fiscal impact to the city of South Padre Island is shown in the table.