LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 83RD LEGISLATIVE REGULAR SESSION May 10, 2013 TO: Honorable Bob Deuell, Chair, Senate Committee on Economic Development FROM: Ursula Parks, Director, Legislative Budget Board IN RE:HB3043 by Oliveira (Relating to increasing the maximum rate at which certain municipalities may impose a hotel occupancy tax and to the use of revenue from that tax.), As Engrossed Estimated Two-year Net Impact to General Revenue Related Funds for HB3043, As Engrossed: an impact of $0 through the biennium ending August 31, 2015.
LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 83RD LEGISLATIVE REGULAR SESSION
May 10, 2013
TO: Honorable Bob Deuell, Chair, Senate Committee on Economic Development FROM: Ursula Parks, Director, Legislative Budget Board IN RE:HB3043 by Oliveira (Relating to increasing the maximum rate at which certain municipalities may impose a hotel occupancy tax and to the use of revenue from that tax.), As Engrossed
TO: Honorable Bob Deuell, Chair, Senate Committee on Economic Development
FROM: Ursula Parks, Director, Legislative Budget Board
IN RE: HB3043 by Oliveira (Relating to increasing the maximum rate at which certain municipalities may impose a hotel occupancy tax and to the use of revenue from that tax.), 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
HB3043 by Oliveira (Relating to increasing the maximum rate at which certain municipalities may impose a hotel occupancy tax and to the use of revenue from that tax.), As Engrossed
HB3043 by Oliveira (Relating to increasing the maximum rate at which certain municipalities may impose a hotel occupancy tax and to the use of revenue from that tax.), As Engrossed
Estimated Two-year Net Impact to General Revenue Related Funds for HB3043, As Engrossed: an impact of $0 through the biennium ending August 31, 2015.
Estimated Two-year Net Impact to General Revenue Related Funds for HB3043, As Engrossed: an impact of $0 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 $0 2015 $0 2016 $0 2017 $0 2018 $0
2014 $0
2015 $0
2016 $0
2017 $0
2018 $0
All Funds, Five-Year Impact: Fiscal Year Probable Revenue Gain/(Loss) fromCity of South Padre Island 2014 $319,000 2015 $364,000 2016 $382,000 2017 $402,000 2018 $421,000
Fiscal Year Probable Revenue Gain/(Loss) fromCity of South Padre Island 2014 $319,000 2015 $364,000 2016 $382,000 2017 $402,000 2018 $421,000
2014 $319,000
2015 $364,000
2016 $382,000
2017 $402,000
2018 $421,000
Fiscal Analysis
The bill would amend Chapter 351 of the Tax Code, regarding municipal hotel occupancy taxes. The bill would allow a municipality authorized to impose a municipal hotel occupancy tax under Section 351.003(d) to set the tax rate at up to 9 percent of the price paid for a room, a change from the current maximum of 8.5 percent rate in current law. The bill also would increase the amount of revenue derived from the imposition of this tax, from the current rate of 0.5 percent to a rate of one percent, that must be used by the municipality for erosion response projects. The bill would take effect immediately upon receiving two-thirds majority vote in each house. Otherwise, the bill would take effect September 1, 2013.
The bill would amend Chapter 351 of the Tax Code, regarding municipal hotel occupancy taxes. The bill would allow a municipality authorized to impose a municipal hotel occupancy tax under Section 351.003(d) to set the tax rate at up to 9 percent of the price paid for a room, a change from the current maximum of 8.5 percent rate in current law. The bill also would increase the amount of revenue derived from the imposition of this tax, from the current rate of 0.5 percent to a rate of one percent, that must be used by the municipality for erosion response projects.
The bill would take effect immediately upon receiving two-thirds majority vote in each house. Otherwise, the bill would take effect September 1, 2013.
Methodology
The bill's provisions would apply to the City of South Padre Island. To estimate the potential fiscal impact of this bill, data on taxable hotel receipts for South Padre Island were gathered from Comptroller tax files, which were then multiplied by 0.5 percent. The fiscal impact was then adjusted for the bill's effective date and extrapolated through 2018.
Local Government Impact
The local fiscal implications cannot be determined as the timing for the imposition of this new rate is unknown. However, the table illustrates the fiscal impact should the City of South Padre Island adopt a 9 percent municipal hotel occupancy tax rate (increased from the current rate of 8.5 percent) at the earliest date permissible, and the amount of revenues available for erosion response projects were one percent of the cost of a room.
Source Agencies: 304 Comptroller of Public Accounts
304 Comptroller of Public Accounts
LBB Staff: UP, RB, KK, SD, AG
UP, RB, KK, SD, AG