LEGISLATIVE BUDGET BOARD

Austin, Texas

FISCAL NOTE, 83RD LEGISLATIVE REGULAR SESSION

March 4, 2013

TO:	Honorable Bob Deuell, Chair, Senate Committee On Economic Development
FROM:	Ursula Parks, Director, Legislative Budget Board
IN RE:	SB585 by Hegar (Relating to the use of municipal hotel occupancy tax revenue to enhance and upgrade sports facilities in certain municipalities.), 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.

The bill would allow a municipality with a population of not more than 300,000 and in which a component of the University of Houston System is located, to use revenue from its municipal hotel occupancy tax for the promotion of tourism by the enhancement and upgrading of existing sports facilities or fields, including facilities or fields for baseball, softball, soccer, and flag football.

The bill contains no state revenue or appropriation measures, and would affect only the uses of hotel tax revenues collected by the municipalities.

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.

Local Government Impact

According to the Comptroller of Public Accounts, any municipality in Victoria County would be affected by the bill's provisions, based on the U.S. Census Bureau's population estimates in the 2010 census and the presence of the University of Houston-Victoria. For an applicable municipality, 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 the promotion of tourism by the enhancement and upgrading of existing sports facilities or fields.

Source Agencies:

304 Comptroller of Public Accounts

LBB Staff:

UP, RB, SD, AG