LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 83RD LEGISLATIVE REGULAR SESSION May 14, 2013 TO: Honorable Bob Deuell, Chair, Senate Committee on Economic Development 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 Engrossed Estimated Two-year Net Impact to General Revenue Related Funds for HB3042, As Engrossed: a negative impact of ($1,537,000) through the biennium ending August 31, 2015.
LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 83RD LEGISLATIVE REGULAR SESSION
May 14, 2013
TO: Honorable Bob Deuell, Chair, Senate Committee on Economic Development 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 Engrossed
TO: Honorable Bob Deuell, Chair, Senate Committee on Economic Development
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 Engrossed
Honorable Bob Deuell, Chair, Senate Committee on Economic Development
Honorable Bob Deuell, Chair, Senate Committee on Economic Development
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 Engrossed
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 Engrossed
Estimated Two-year Net Impact to General Revenue Related Funds for HB3042, As Engrossed: a negative impact of ($1,537,000) through the biennium ending August 31, 2015.
Estimated Two-year Net Impact to General Revenue Related Funds for HB3042, As Engrossed: a negative impact of ($1,537,000) 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 ($717,000) 2015 ($820,000) 2016 ($860,000) 2017 ($903,000) 2018 ($948,000)
2014 ($717,000)
2015 ($820,000)
2016 ($860,000)
2017 ($903,000)
2018 ($948,000)
All Funds, Five-Year Impact: Fiscal Year Probable Revenue Gain/(Loss) fromGeneral Revenue Fund1 Probable Revenue Gain/(Loss) fromCity of South Padre Island 2014 ($717,000) $717,000 2015 ($820,000) $820,000 2016 ($860,000) $860,000 2017 ($903,000) $903,000 2018 ($948,000) $948,000
Fiscal Year Probable Revenue Gain/(Loss) fromGeneral Revenue Fund1 Probable Revenue Gain/(Loss) fromCity of South Padre Island 2014 ($717,000) $717,000 2015 ($820,000) $820,000 2016 ($860,000) $860,000 2017 ($903,000) $903,000 2018 ($948,000) $948,000
2014 ($717,000) $717,000
2015 ($820,000) $820,000
2016 ($860,000) $860,000
2017 ($903,000) $903,000
2018 ($948,000) $948,000
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 place of the warrant that municipality currently receives for 1 percent from those revenues. The Comptroller would not be allowed to issue a warrant to any municipality under Section 156.2512 for an amount greater than 2 percent of the revenue derived from the state hotel occupancy tax. 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 1 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 fiscal impact to the city of South Padre Island is shown in the table.
Source Agencies: 304 Comptroller of Public Accounts
304 Comptroller of Public Accounts
LBB Staff: UP, RB, SD, AG, KK
UP, RB, SD, AG, KK