LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 83RD LEGISLATIVE REGULAR SESSION April 7, 2013 TO: Honorable Harvey Hilderbran, Chair, House Committee on Ways & Means FROM: Ursula Parks, Director, Legislative Budget Board IN RE:HB351 by Canales (Relating to the tax exemption for permanent hotel residents.), As Introduced Estimated Two-year Net Impact to General Revenue Related Funds for HB351, As Introduced: a positive impact of $5,411,000 through the biennium ending August 31, 2015. The bill would make no appropriation but could provide the legal basis for an appropriation of funds to implement the provisions of the bill.
LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 83RD LEGISLATIVE REGULAR SESSION
April 7, 2013
TO: Honorable Harvey Hilderbran, Chair, House Committee on Ways & Means FROM: Ursula Parks, Director, Legislative Budget Board IN RE:HB351 by Canales (Relating to the tax exemption for permanent hotel residents.), As Introduced
TO: Honorable Harvey Hilderbran, Chair, House Committee on Ways & Means
FROM: Ursula Parks, Director, Legislative Budget Board
IN RE: HB351 by Canales (Relating to the tax exemption for permanent hotel residents.), 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
HB351 by Canales (Relating to the tax exemption for permanent hotel residents.), As Introduced
HB351 by Canales (Relating to the tax exemption for permanent hotel residents.), As Introduced
Estimated Two-year Net Impact to General Revenue Related Funds for HB351, As Introduced: a positive impact of $5,411,000 through the biennium ending August 31, 2015. The bill would make no appropriation but could provide the legal basis for an appropriation of funds to implement the provisions of the bill.
Estimated Two-year Net Impact to General Revenue Related Funds for HB351, As Introduced: a positive impact of $5,411,000 through the biennium ending August 31, 2015.
The bill would make no appropriation but could provide the legal basis for an appropriation of funds to implement the provisions of the bill.
General Revenue-Related Funds, Five-Year Impact: Fiscal Year Probable Net Positive/(Negative) Impact to General Revenue Related Funds 2014 $2,641,000 2015 $2,770,000 2016 $2,907,000 2017 $3,051,000 2018 $3,203,000
2014 $2,641,000
2015 $2,770,000
2016 $2,907,000
2017 $3,051,000
2018 $3,203,000
All Funds, Five-Year Impact: Fiscal Year Probable Revenue Gain/(Loss) fromGeneral Revenue Fund1 Probable Revenue Gain/(Loss) fromHotel Occup Tax Depos Acc5003 2014 $2,421,000 $220,000 2015 $2,539,000 $231,000 2016 $2,665,000 $242,000 2017 $2,797,000 $254,000 2018 $2,936,000 $267,000
Fiscal Year Probable Revenue Gain/(Loss) fromGeneral Revenue Fund1 Probable Revenue Gain/(Loss) fromHotel Occup Tax Depos Acc5003 2014 $2,421,000 $220,000 2015 $2,539,000 $231,000 2016 $2,665,000 $242,000 2017 $2,797,000 $254,000 2018 $2,936,000 $267,000
2014 $2,421,000 $220,000
2015 $2,539,000 $231,000
2016 $2,665,000 $242,000
2017 $2,797,000 $254,000
2018 $2,936,000 $267,000
Fiscal Analysis
This bill would amend Chapter 156 of the Tax Code, increasing the number of consecutive days for which a person has the right to use or possess a hotel room to be considered a permanent resident to sixty days. Currently, a permanent resident is defined as a person who uses or possess a hotel room for 30 consecutive days or more. A permanent resident is not subject to the hotel occupancy tax. This bill would take effect September 1, 2013.
Methodology
The Comptroller of Public Accounts reports that the amount of revenue generated from hotel stays lasting longer than 60 days was estimated and multiplied by the state hotel tax rate of six percent. Because of the timing of remittances, the fiscal impact for the first year was adjusted to reflect the collection schedule. Per statute, one-twelfth of the revenue generated by the tax is used for the purpose of promoting tourism in the state and is allocated to GR Account 5003 Hotel Occupancy Tax for Economic Development.
Technology
No impact to tecnology is anticipated as a result of this recommendation.
Local Government Impact
No fiscal implication to units of local government is anticipated.
Source Agencies: 304 Comptroller of Public Accounts
304 Comptroller of Public Accounts
LBB Staff: UP, KK, JI, YD
UP, KK, JI, YD