BILL ANALYSIS

S.B. 1655

By: Birdwell

Ways & Means

Committee Report (Unamended)

BACKGROUND AND PURPOSE

State law requires municipalities that impose a hotel occupancy tax to submit an annual report to the comptroller of public accounts detailing certain information about the collection of that tax. There are concerns about the lack of transparency in the collection of hotel occupancy taxes by counties, as they are not subject to similar reporting requirements. In an effort to continue to increase transparency around hotel occupancy taxes, S.B. 1655 seeks to require counties that impose a hotel occupancy tax to also submit an annual report to the comptroller.

CRIMINAL JUSTICE IMPACT

It is the committee's opinion that this bill does not expressly create a criminal offense, increase the punishment for an existing criminal offense or category of offenses, or change the eligibility of a person for community supervision, parole, or mandatory supervision.

RULEMAKING AUTHORITY

It is the committee's opinion that rulemaking authority is expressly granted to the comptroller of public accounts in SECTION 1 of this bill.

ANALYSIS

S.B. 1655 amends the Tax Code to require a county that imposes a hotel occupancy tax to report the following information to the comptroller of public accounts not later than February 20 of each year beginning in 2022:

· the rate of the county's general hotel occupancy tax and, if applicable, the county's hotel occupancy tax imposed for the financing of certain sports and community venues; and

· the amount of revenue collected during the county's preceding fiscal year from each such tax, as applicable.

The bill gives a county the option to make the report either by submitting the report to the comptroller on a form prescribed by the comptroller or by providing the comptroller a direct link to, or a clear statement describing the location of, the information required to be reported that is posted on the county's website. The bill requires the comptroller to prescribe the reporting form as soon as practicable but not later than January 1, 2022, and authorizes the comptroller to adopt rules necessary to administer the bill's provisions.

EFFECTIVE DATE

On passage, or, if the bill does not receive the necessary vote, September 1, 2021.