LEGISLATIVE BUDGET BOARD

Austin, Texas

FISCAL NOTE, 83RD LEGISLATIVE REGULAR SESSION

May 3, 2013

TO:	Honorable David Dewhurst, Lieutenant Governor, Senate
FROM:	Ursula Parks, Director, Legislative Budget Board
IN RE:	SB412 by Seliger (Relating to the authority of certain counties to impose a hotel occupancy tax for the maintenance, operation, and promotion of and improved access to a coliseum in the county; authorizing a tax. ), As Passed 2nd House

Estimated Two-year Net Impact to General Revenue Related Funds for SB412, As Passed 2nd House: an impact of $0 through the biennium ending August 31, 2015.

General Revenue-Related Funds, Five-Year Impact:

Fiscal Year	Probable Net Positive/(Negative) Impact to General Revenue Related Funds
2014	$0
2015	$0
2016	$0
2017	$0
2018	$0

All Funds, Five-Year Impact:

Fiscal Year	Probable Revenue Gain/(Loss) from Ector County
2014	$1,632,000
2015	$1,796,000
2016	$1,975,000
2017	$2,173,000
2018	$2,390,000

Fiscal Analysis

The bill would amend Chapter 352 of the Tax Code, regarding the county hotel occupancy tax.
 
The bill would authorize a county with a population of less than 200,000 in which a minor league hockey team is or has been located and in which a component institution of the University of Texas System is located to impose a county hotel occupancy tax not to exceed two percent of the price paid for a room in a hotel. The bill would direct the revenue from the tax imposed by the bill to be used to operate, maintain, and improve a coliseum in the county and advertise and conduct solicitations and promotional programs to attract visitors to the coliseum.

The bill would take effect immediately upon enactment, assuming that it received the requisite two-thirds majority votes in both houses of the Legislature. Otherwise, it would take effect September 1, 2013.

Methodology

Based on the requirements of the bill, Ector County would be the only eligible county. To estimate the fiscal impact of the bill, the Comptroller of Public Accounts gathered data on taxable hotel receipts for Ector County from tax files, which were then multiplied by 2 percent (the maximum rate should this bill become law) to determine the maximum potential gain to the county.

Local Government Impact

The local fiscal implications cannot be determined as the tax rate that might be set by the county and the timing for the imposition of this tax are unknown. However, for illustrative purposes this analysis shows the fiscal impact should the county adopt the maximum 2 percent county hotel occupancy tax rate at the earliest date permissible.

Source Agencies:

304 Comptroller of Public Accounts

LBB Staff:

UP, SZ, RB, SD, AG