LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 83RD LEGISLATIVE REGULAR SESSION April 4, 2013 TO: Honorable Harvey Hilderbran, Chair, House Committee on Ways & Means FROM: Ursula Parks, Director, Legislative Budget Board IN RE:HB3042 by Oliveira (Relating to the allocation of state hotel occupancy tax revenue to certain municipalities for cleaning and maintenance of and erosion control for public beaches.), As Introduced Estimated Two-year Net Impact to General Revenue Related Funds for HB3042, As Introduced: a negative impact of ($3,073,000) through the biennium ending August 31, 2015.
LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 83RD LEGISLATIVE REGULAR SESSION
April 4, 2013
TO: Honorable Harvey Hilderbran, Chair, House Committee on Ways & Means FROM: Ursula Parks, Director, Legislative Budget Board IN RE:HB3042 by Oliveira (Relating to the allocation of state hotel occupancy tax revenue to certain municipalities for cleaning and maintenance of and erosion control for public beaches.), As Introduced
TO: Honorable Harvey Hilderbran, Chair, House Committee on Ways & Means
FROM: Ursula Parks, Director, Legislative Budget Board
IN RE: HB3042 by Oliveira (Relating to the allocation of state hotel occupancy tax revenue to certain municipalities for cleaning and maintenance of and erosion control for public beaches.), As Introduced
Honorable Harvey Hilderbran, Chair, House Committee on Ways & Means
Honorable Harvey Hilderbran, Chair, House Committee on Ways & Means
Ursula Parks, Director, Legislative Budget Board
Ursula Parks, Director, Legislative Budget Board
HB3042 by Oliveira (Relating to the allocation of state hotel occupancy tax revenue to certain municipalities for cleaning and maintenance of and erosion control for public beaches.), As Introduced
HB3042 by Oliveira (Relating to the allocation of state hotel occupancy tax revenue to certain municipalities for cleaning and maintenance of and erosion control for public beaches.), As Introduced
Estimated Two-year Net Impact to General Revenue Related Funds for HB3042, As Introduced: a negative impact of ($3,073,000) through the biennium ending August 31, 2015.
Estimated Two-year Net Impact to General Revenue Related Funds for HB3042, As Introduced: a negative impact of ($3,073,000) through the biennium ending August 31, 2015.
General Revenue-Related Funds, Five-Year Impact: Fiscal Year Probable Net Positive/(Negative) Impact to General Revenue Related Funds 2014 ($1,433,000) 2015 ($1,640,000) 2016 ($1,720,000) 2017 ($1,806,000) 2018 ($1,897,000)
2014 ($1,433,000)
2015 ($1,640,000)
2016 ($1,720,000)
2017 ($1,806,000)
2018 ($1,897,000)
All Funds, Five-Year Impact: Fiscal Year Probable Revenue Gain/(Loss) fromGeneral Revenue Fund1 Probable Revenue Gain/(Loss) fromCity of South Padre Island 2014 ($1,433,000) $1,433,000 2015 ($1,640,000) $1,640,000 2016 ($1,720,000) $1,720,000 2017 ($1,806,000) $1,806,000 2018 ($1,897,000) $1,897,000
Fiscal Year Probable Revenue Gain/(Loss) fromGeneral Revenue Fund1 Probable Revenue Gain/(Loss) fromCity of South Padre Island 2014 ($1,433,000) $1,433,000 2015 ($1,640,000) $1,640,000 2016 ($1,720,000) $1,720,000 2017 ($1,806,000) $1,806,000 2018 ($1,897,000) $1,897,000
2014 ($1,433,000) $1,433,000
2015 ($1,640,000) $1,640,000
2016 ($1,720,000) $1,720,000
2017 ($1,806,000) $1,806,000
2018 ($1,897,000) $1,897,000
Fiscal Analysis
The bill would amend Chapter 156 of the Tax Code, regarding the hotel occupancy tax. The bill would direct the Comptroller to issue a warrant drawn on General Revenue Fund 0001, in an amount equal to 2 percent of the revenues derived from the state hotel occupancy tax from hotels located in a municipality described by Section 156.2512(c)(1)(C)(iii) as added by this bill, to that municipality. That warrant would be in addition to the warrant that municipality currently receives for 1 percent from those revenues. The bill would take effect September 1, 2013.
Methodology
The bill's provisions would apply to the City of South Padre Island. Data on taxable hotel receipts for South Padre Island were gathered from Comptroller tax files, which were then multiplied by 2 percent to estimate the bill's fiscal impact. The fiscal impact was then adjusted for the bill's effective date and extrapolated through 2018.
Local Government Impact
The impact to the city of South Padre Island is shown in the above table.
Source Agencies: 304 Comptroller of Public Accounts
304 Comptroller of Public Accounts
LBB Staff: UP, KK, SD, AG
UP, KK, SD, AG