LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 81ST LEGISLATIVE REGULAR SESSION April 28, 2009 TO: Honorable Rene Oliveira, Chair, House Committee on Ways & Means FROM: John S. O'Brien, Director, Legislative Budget Board IN RE:HB4781 by Gallego (Relating to the authority to impose a county hotel occupancy tax.), As Introduced No fiscal implication to the State is anticipated. The bill would amend Chapter 352 of the Tax Code, regarding the county hotel occupancy tax. The bill would authorize a county that borders Mexico, within which a national park of more than 400,000 acres is located, to impose a county hotel occupancy tax at a rate of up to 7 percent of the price paid for a room. That county could not impose the tax on hotels located in a city in the county that imposes a municipal hotel occupancy tax. The bill would remove the 3 percent cap on the hotel occupancy tax levied by a county authorized to impose the tax under Section 352.002(a)(12) for counties having a population of 35,000 or more bordering on or containing a portion of Lake Fork Reservoir, thereby allowing that county to increase the tax rate to the 7 percent maximum allowed by this chapter. 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, 2009. Local Government Impact Under the geographical conditions outlined in the bill, Brewster County is the only county that borders Mexico and within which there is a national park of more than 400,000 acres. Currently, only Wood County is authorized to impose a tax under Section 352.002(a)(12); however, based on the July 2008 population estimates from the U.S. Bureau of Census, Hopkins County is close to reaching the population requirement of 35,000. There could be a potential fiscal impact to Brewster County and Wood County upon passage of this bill and enactment by the county government. It is not known what hotels in those counties are within a municipality that now imposes a hotel occupancy tax. Therefore, the fiscal impact to units of local government cannot be determined. Source Agencies:304 Comptroller of Public Accounts LBB Staff: JOB, MN, SD
LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 81ST LEGISLATIVE REGULAR SESSION
April 28, 2009
TO: Honorable Rene Oliveira, Chair, House Committee on Ways & Means FROM: John S. O'Brien, Director, Legislative Budget Board IN RE:HB4781 by Gallego (Relating to the authority to impose a county hotel occupancy tax.), As Introduced
TO: Honorable Rene Oliveira, Chair, House Committee on Ways & Means
FROM: John S. O'Brien, Director, Legislative Budget Board
IN RE: HB4781 by Gallego (Relating to the authority to impose a county hotel occupancy tax.), As Introduced
Honorable Rene Oliveira, Chair, House Committee on Ways & Means
Honorable Rene Oliveira, Chair, House Committee on Ways & Means
John S. O'Brien, Director, Legislative Budget Board
John S. O'Brien, Director, Legislative Budget Board
HB4781 by Gallego (Relating to the authority to impose a county hotel occupancy tax.), As Introduced
HB4781 by Gallego (Relating to the authority to impose a county hotel occupancy tax.), As Introduced
No fiscal implication to the State is anticipated.
No fiscal implication to the State is anticipated.
The bill would amend Chapter 352 of the Tax Code, regarding the county hotel occupancy tax. The bill would authorize a county that borders Mexico, within which a national park of more than 400,000 acres is located, to impose a county hotel occupancy tax at a rate of up to 7 percent of the price paid for a room. That county could not impose the tax on hotels located in a city in the county that imposes a municipal hotel occupancy tax. The bill would remove the 3 percent cap on the hotel occupancy tax levied by a county authorized to impose the tax under Section 352.002(a)(12) for counties having a population of 35,000 or more bordering on or containing a portion of Lake Fork Reservoir, thereby allowing that county to increase the tax rate to the 7 percent maximum allowed by this chapter. 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, 2009.
The bill would amend Chapter 352 of the Tax Code, regarding the county hotel occupancy tax.
The bill would authorize a county that borders Mexico, within which a national park of more than 400,000 acres is located, to impose a county hotel occupancy tax at a rate of up to 7 percent of the price paid for a room. That county could not impose the tax on hotels located in a city in the county that imposes a municipal hotel occupancy tax.
The bill would remove the 3 percent cap on the hotel occupancy tax levied by a county authorized to impose the tax under Section 352.002(a)(12) for counties having a population of 35,000 or more bordering on or containing a portion of Lake Fork Reservoir, thereby allowing that county to increase the tax rate to the 7 percent maximum allowed by this chapter.
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, 2009.
Local Government Impact
Under the geographical conditions outlined in the bill, Brewster County is the only county that borders Mexico and within which there is a national park of more than 400,000 acres. Currently, only Wood County is authorized to impose a tax under Section 352.002(a)(12); however, based on the July 2008 population estimates from the U.S. Bureau of Census, Hopkins County is close to reaching the population requirement of 35,000. There could be a potential fiscal impact to Brewster County and Wood County upon passage of this bill and enactment by the county government. It is not known what hotels in those counties are within a municipality that now imposes a hotel occupancy tax. Therefore, the fiscal impact to units of local government cannot be determined.
Under the geographical conditions outlined in the bill, Brewster County is the only county that borders Mexico and within which there is a national park of more than 400,000 acres. Currently, only Wood County is authorized to impose a tax under Section 352.002(a)(12); however, based on the July 2008 population estimates from the U.S. Bureau of Census, Hopkins County is close to reaching the population requirement of 35,000.
There could be a potential fiscal impact to Brewster County and Wood County upon passage of this bill and enactment by the county government. It is not known what hotels in those counties are within a municipality that now imposes a hotel occupancy tax. Therefore, the fiscal impact to units of local government cannot be determined.
Source Agencies: 304 Comptroller of Public Accounts
304 Comptroller of Public Accounts
LBB Staff: JOB, MN, SD
JOB, MN, SD