LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 83RD LEGISLATIVE REGULAR SESSION April 24, 2013 TO: Honorable Tommy Williams, Chair, Senate Committee on Finance FROM: Ursula Parks, Director, Legislative Budget Board IN RE:SB319 by Uresti (Relating to the tax exemption for permanent hotel residents.), As Introduced Estimated Two-year Net Impact to General Revenue Related Funds for SB319, As Introduced: a positive impact of $8,495,000 through the biennium ending August 31, 2015.
LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 83RD LEGISLATIVE REGULAR SESSION
April 24, 2013
TO: Honorable Tommy Williams, Chair, Senate Committee on Finance FROM: Ursula Parks, Director, Legislative Budget Board IN RE:SB319 by Uresti (Relating to the tax exemption for permanent hotel residents.), As Introduced
TO: Honorable Tommy Williams, Chair, Senate Committee on Finance
FROM: Ursula Parks, Director, Legislative Budget Board
IN RE: SB319 by Uresti (Relating to the tax exemption for permanent hotel residents.), As Introduced
Honorable Tommy Williams, Chair, Senate Committee on Finance
Honorable Tommy Williams, Chair, Senate Committee on Finance
Ursula Parks, Director, Legislative Budget Board
Ursula Parks, Director, Legislative Budget Board
SB319 by Uresti (Relating to the tax exemption for permanent hotel residents.), As Introduced
SB319 by Uresti (Relating to the tax exemption for permanent hotel residents.), As Introduced
Estimated Two-year Net Impact to General Revenue Related Funds for SB319, As Introduced: a positive impact of $8,495,000 through the biennium ending August 31, 2015.
Estimated Two-year Net Impact to General Revenue Related Funds for SB319, As Introduced: a positive impact of $8,495,000 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 $3,962,000 2015 $4,533,000 2016 $4,756,000 2017 $4,993,000 2018 $5,241,000
2014 $3,962,000
2015 $4,533,000
2016 $4,756,000
2017 $4,993,000
2018 $5,241,000
All Funds, Five-Year Impact: Fiscal Year Probable Revenue (Loss) fromGeneral Revenue Fund1 Probable Revenue (Loss) fromHotel Occup Tax Depos Acc5003 2014 $3,632,000 $330,000 2015 $4,155,000 $378,000 2016 $4,360,000 $396,000 2017 $4,577,000 $416,000 2018 $4,804,000 $437,000
Fiscal Year Probable Revenue (Loss) fromGeneral Revenue Fund1 Probable Revenue (Loss) fromHotel Occup Tax Depos Acc5003 2014 $3,632,000 $330,000 2015 $4,155,000 $378,000 2016 $4,360,000 $396,000 2017 $4,577,000 $416,000 2018 $4,804,000 $437,000
2014 $3,632,000 $330,000
2015 $4,155,000 $378,000
2016 $4,360,000 $396,000
2017 $4,577,000 $416,000
2018 $4,804,000 $437,000
Fiscal Analysis
The bill would amend Chapter 156.101 of the Tax Code, relating to the hotel occupancy tax, to state that the 30 day permanent resident exemption would apply to an "individual". Under currently law, this exemption applies to a "person". The bill would take effect September 1, 2013.
The bill would amend Chapter 156.101 of the Tax Code, relating to the hotel occupancy tax, to state that the 30 day permanent resident exemption would apply to an "individual". Under currently law, this exemption applies to a "person".
The bill would take effect September 1, 2013.
Methodology
The change from "person" to "individual" regarding the permanent resident exemption would restrict the exemption to an individual person, as opposed to being applicable to a business or entity that rents hotel rooms for greater than 30 days. To calculate the revenue gain, the Comptroller estimated the revenue generated from hotel stays that would no longer be fall under the permanent resident exemption multiplied by the state hotel tax rate. Because of the timing of remittances, the Comptroller adjusted the fiscal impact for the first year to reflect the collection schedule. Under statute, 8.33 percent of the revenue collected from state hotel tax collections is allocated to GR Account 5003, Hotel Occupancy Tax for Economic Development.
The change from "person" to "individual" regarding the permanent resident exemption would restrict the exemption to an individual person, as opposed to being applicable to a business or entity that rents hotel rooms for greater than 30 days.
To calculate the revenue gain, the Comptroller estimated the revenue generated from hotel stays that would no longer be fall under the permanent resident exemption multiplied by the state hotel tax rate. Because of the timing of remittances, the Comptroller adjusted the fiscal impact for the first year to reflect the collection schedule.
Under statute, 8.33 percent of the revenue collected from state hotel tax collections is allocated to GR Account 5003, Hotel Occupancy Tax for Economic Development.
Technology
No impact to technology is anticipated as a result of this bill.
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