Honorable Dennis Bonnen, Chair, House Committee on Ways & Means
FROM:
Ursula Parks, Director, Legislative Budget Board
IN RE:
HB4173 by Hinojosa, Gina (Relating to the portion of the municipal hotel occupancy tax revenue collected in certain cities that can be utilized to promote the arts.), As Introduced
No fiscal implication to the State is anticipated.
The bill would amend Section 351.103(c) of the Tax Code, regarding the allocation of municipal hotel tax revenue, to allow a municipality with a population of at least 750,000 but less than 1,000,000 to expend up to the greater of 19.3 percent of its municipal hotel occupancy tax revenue, or the amount of that tax received at a rate of 1 percent of the cost of a room, on the promotion of the arts.
The bill would have no state revenue implications.
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, 2017.
Local Government Impact
The bill would modify the allowable use of municipal hotel occupancy tax revenue in the City of Austin.