Honorable Angie Chen Button, Chair, House Committee on Urban Affairs
FROM:
John McGeady, Assistant Director Sarah Keyton, Assistant Director Legislative Budget Board
IN RE:
HB3778 by Button (Relating to regulation of short-term rental units; authorizing a civil penalty; limiting the amount of a fee.), As Introduced
Estimated Two-year Net Impact to General Revenue Related Funds for HB3778, As Introduced: a negative impact of ($336,000) through the biennium ending August 31, 2021.
Fiscal Year
Probable Net Positive/(Negative) Impact to General Revenue Related Funds
2020
($336,000)
2021
$0
2022
$0
2023
$0
2024
$0
Fiscal Year
Probable Savings/(Cost) from General Revenue Fund 1
2020
($336,000)
2021
$0
2022
$0
2023
$0
2024
$0
Fiscal Analysis
The bill would amend the Local Government Code and the Tax Code to restrict the authority of municipalities to regulate short-term rental units and would cap the allowable fee for registration of these units at the lesser of the amount needed to cover administrative costs or $450.
The bill would require a person who facilitates a short-term rental but does not collect tax as required under the bill to file a periodic report with the Comptroller of Public Accounts (CPA) with specified information about the property. The bill would authorize CPA to prescribe a form for this report and would require CPA to establish and to maintain a statewide database of municipalities that have adopted short-term rental unit ordinances and to publish the database on the office's Internet website.
According to CPA, the bill would have no fiscal impact on the State. The bill would impose an administrative cost on CPA from the provision requiring development of a database. The bill would have no state revenue implications.
The bill would take effect September 1, 2019.
Methodology
CPA provided the results of an analysis of the requirements of the bill pertaining to the development of a database to track required periodic reports.
Technology
According to CPA, there would be a one-time technology cost of $336,000 in fiscal year 2020 for an estimated 2,240 hours of database coding and programming changes for the statewide database.
Local Government Impact
According to CPA, the bill could affect municipal penalty revenue.