| TO: | Honorable Tommy Williams, Chair, Senate Committee on Finance |
| FROM: | Ursula Parks, Director, Legislative Budget Board |
| IN RE: | SB319 by Uresti (Relating to the tax exemption for permanent hotel residents.), As Introduced |
| Fiscal Year | Probable Net Positive/(Negative) Impact to General Revenue Related Funds |
|---|---|
| 2014 | $3,962,000 |
| 2015 | $4,533,000 |
| 2016 | $4,756,000 |
| 2017 | $4,993,000 |
| 2018 | $5,241,000 |
| Fiscal Year | Probable Revenue (Loss) from General Revenue Fund 1 |
Probable Revenue (Loss) from Hotel Occup Tax Depos Acc 5003 |
|---|---|---|
| 2014 | $3,632,000 | $330,000 |
| 2015 | $4,155,000 | $378,000 |
| 2016 | $4,360,000 | $396,000 |
| 2017 | $4,577,000 | $416,000 |
| 2018 | $4,804,000 | $437,000 |
The bill would amend Chapter 156.101 of the Tax Code, relating to the hotel occupancy tax, to state that the 30 day permanent resident exemption would apply to an "individual". Under currently law, this exemption applies to a "person".
The bill would take effect September 1, 2013.
The change from "person" to "individual" regarding the permanent resident exemption would restrict the exemption to an individual person, as opposed to being applicable to a business or entity that rents hotel rooms for greater than 30 days.
To calculate the revenue gain, the Comptroller estimated the revenue generated from hotel stays that would no longer be fall under the permanent resident exemption multiplied by the state hotel tax rate. Because of the timing of remittances, the Comptroller adjusted the fiscal impact for the first year to reflect the collection schedule.
Under statute, 8.33 percent of the revenue collected from state hotel tax collections is allocated to GR Account 5003, Hotel Occupancy Tax for Economic Development.
| Source Agencies: | 304 Comptroller of Public Accounts
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| LBB Staff: | UP, KK, JI, YD
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