LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 82ND LEGISLATIVE REGULAR SESSION April 8, 2011 TO: Honorable Harvey Hilderbran, Chair, House Committee on Ways & Means FROM: John S O'Brien, Director, Legislative Budget Board IN RE:SB349 by Eltife (Relating to the hotel occupancy tax rate in certain municipalities.), As Engrossed Estimated Two-year Net Impact to General Revenue Related Funds for SB349, As Engrossed: an impact of $0 through the biennium ending August 31, 2013.
LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 82ND LEGISLATIVE REGULAR SESSION
April 8, 2011
TO: Honorable Harvey Hilderbran, Chair, House Committee on Ways & Means FROM: John S O'Brien, Director, Legislative Budget Board IN RE:SB349 by Eltife (Relating to the hotel occupancy tax rate in certain municipalities.), As Engrossed
TO: Honorable Harvey Hilderbran, Chair, House Committee on Ways & Means
FROM: John S O'Brien, Director, Legislative Budget Board
IN RE: SB349 by Eltife (Relating to the hotel occupancy tax rate in certain municipalities.), As Engrossed
Honorable Harvey Hilderbran, Chair, House Committee on Ways & Means
Honorable Harvey Hilderbran, Chair, House Committee on Ways & Means
John S O'Brien, Director, Legislative Budget Board
John S O'Brien, Director, Legislative Budget Board
SB349 by Eltife (Relating to the hotel occupancy tax rate in certain municipalities.), As Engrossed
SB349 by Eltife (Relating to the hotel occupancy tax rate in certain municipalities.), As Engrossed
Estimated Two-year Net Impact to General Revenue Related Funds for SB349, As Engrossed: an impact of $0 through the biennium ending August 31, 2013.
Estimated Two-year Net Impact to General Revenue Related Funds for SB349, As Engrossed: an impact of $0 through the biennium ending August 31, 2013.
General Revenue-Related Funds, Five-Year Impact: Fiscal Year Probable Net Positive/(Negative) Impact to General Revenue Related Funds 2012 $0 2013 $0 2014 $0 2015 $0 2016 $0
2012 $0
2013 $0
2014 $0
2015 $0
2016 $0
All Funds, Five-Year Impact: Fiscal Year Probable Revenue Gain/(Loss) fromCity of Longview Probable Revenue Gain/(Loss) fromCity of Tyler 2012 $370,000 $470,000 2013 $424,000 $539,000 2014 $445,000 $566,000 2015 $467,000 $594,000 2016 $490,000 $624,000
Fiscal Year Probable Revenue Gain/(Loss) fromCity of Longview Probable Revenue Gain/(Loss) fromCity of Tyler 2012 $370,000 $470,000 2013 $424,000 $539,000 2014 $445,000 $566,000 2015 $467,000 $594,000 2016 $490,000 $624,000
2012 $370,000 $470,000
2013 $424,000 $539,000
2014 $445,000 $566,000
2015 $467,000 $594,000
2016 $490,000 $624,000
Fiscal Analysis
The bill would amend Chapter 351 of the Tax Code, regarding municipal hotel occupancy taxes. The bill would set the maximum allowable municipal hotel occupancy tax rate at 9 percent of the pricepaid for a room for a municipality with a population greater than 95,000 located in a county with apopulation greater than 200,000 that borders Lake Palestine. The bill would set the maximum allowable municipal hotel occupancy tax rate at 9 percent of the price paid for a room for a municipality with a population of at least 80,000 that is partially located in a county that borders the state of Louisiana and has a population of at least 60,000.The bill would take effect immediately, assuming it receives the requisite two thirds majority votes in both houses of the Legislature. Otherwise, it would take effect September 1, 2011.
The bill would amend Chapter 351 of the Tax Code, regarding municipal hotel occupancy taxes.
The bill would set the maximum allowable municipal hotel occupancy tax rate at 9 percent of the pricepaid for a room for a municipality with a population greater than 95,000 located in a county with apopulation greater than 200,000 that borders Lake Palestine.
The bill would set the maximum allowable municipal hotel occupancy tax rate at 9 percent of the price paid for a room for a municipality with a population of at least 80,000 that is partially located in a county that borders the state of Louisiana and has a population of at least 60,000.The bill would take effect immediately, assuming it receives the requisite two thirds majority votes in both houses of the Legislature. Otherwise, it would take effect September 1, 2011.
Methodology
According to the Comptroller of Public Accounts, the cities of Longview and Tyler would be the only eligible municipalities that would meet the criteria in the bill. For the purpose of this estimate, the Comptroller gathered data on hotel receipts for Longview and Tyler subject to the state hotel occupancy tax from tax files, and multiplied the receipts by 2 percent (the difference between the current 7 percent rate the cities can levy under the Chapter's general provisions and the maximum rate should the bill become law) to determine the maximum potential gains to the cities. The Comptroller reports the fiscal implications for Longview and Tyler cannot be determined as the tax rates that might be set by the cities and the timing of any changes are unknown. However, for illustrative purposes this analysis shows the fiscal impact should Longview and Tyler adopt the maximum 9 percent municipal hotel occupancy tax rate at the earliest date permissible.
Local Government Impact
The fiscal impact to local government is illustrated in the above table.
Source Agencies: 304 Comptroller of Public Accounts
304 Comptroller of Public Accounts
LBB Staff: JOB, KKR, SD, AG
JOB, KKR, SD, AG