LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 84TH LEGISLATIVE REGULAR SESSION Revision 1 April 28, 2015 TO: Honorable Dennis Bonnen, Chair, House Committee on Ways & Means FROM: Ursula Parks, Director, Legislative Budget Board IN RE:HB1742 by Márquez (Relating to a qualified hotel project.), As Introduced Estimated Two-year Net Impact to General Revenue Related Funds for HB1742, As Introduced: a negative impact of ($1,110,000) through the biennium ending August 31, 2017.
LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 84TH LEGISLATIVE REGULAR SESSION
Revision 1
April 28, 2015
Revision 1
Revision 1
TO: Honorable Dennis Bonnen, Chair, House Committee on Ways & Means FROM: Ursula Parks, Director, Legislative Budget Board IN RE:HB1742 by Márquez (Relating to a qualified hotel project.), As Introduced
TO: Honorable Dennis Bonnen, Chair, House Committee on Ways & Means
FROM: Ursula Parks, Director, Legislative Budget Board
IN RE: HB1742 by Márquez (Relating to a qualified hotel project.), As Introduced
Honorable Dennis Bonnen, Chair, House Committee on Ways & Means
Honorable Dennis Bonnen, Chair, House Committee on Ways & Means
Ursula Parks, Director, Legislative Budget Board
Ursula Parks, Director, Legislative Budget Board
HB1742 by Márquez (Relating to a qualified hotel project.), As Introduced
HB1742 by Márquez (Relating to a qualified hotel project.), As Introduced
Estimated Two-year Net Impact to General Revenue Related Funds for HB1742, As Introduced: a negative impact of ($1,110,000) through the biennium ending August 31, 2017.
Estimated Two-year Net Impact to General Revenue Related Funds for HB1742, As Introduced: a negative impact of ($1,110,000) through the biennium ending August 31, 2017.
General Revenue-Related Funds, Five-Year Impact: Fiscal Year Probable Net Positive/(Negative) Impact to General Revenue Related Funds 2016 $0 2017 ($1,110,000) 2018 ($1,170,000) 2019 ($1,230,000) 2020 ($1,290,000)
2016 $0
2017 ($1,110,000)
2018 ($1,170,000)
2019 ($1,230,000)
2020 ($1,290,000)
All Funds, Five-Year Impact: Fiscal Year Probable Revenue Gain/(Loss) fromGeneral Revenue Fund1 2016 $0 2017 ($1,110,000) 2018 ($1,170,000) 2019 ($1,230,000) 2020 ($1,290,000)
Fiscal Year Probable Revenue Gain/(Loss) fromGeneral Revenue Fund1 2016 $0 2017 ($1,110,000) 2018 ($1,170,000) 2019 ($1,230,000) 2020 ($1,290,000)
2016 $0
2017 ($1,110,000)
2018 ($1,170,000)
2019 ($1,230,000)
2020 ($1,290,000)
Fiscal Analysis
The bill would amend Chapter 351 of the Tax Code, regarding municipal hotel occupancy taxes, to expand the definition of an eligible central municipality authorized to levy this tax to include a municipality with a population of 640,000 or more located in a county on an international border. The bill amends Section 151.429(h) of the Tax Code to eliminate language to disqualify a qualified hotel project described by Section 2303.003(8)(B) of the Government Code from receiving a 100 percent refund of state sales tax and hotel tax. The bill would take effect September 1, 2015.
Methodology
In fiscal year 2014, a total of $11,308,406 in state revenue was allocated for qualified hotel projects. Currently the cities of Dallas, Fort Worth, and San Antonio receive allocations of state sales and use tax and state hotel tax associated with qualified hotel projects. This estimate is based on amounts of state sales and hotel tax revenues retained by the existing qualified hotel projects in relation to their share of host city hotel markets as indicated by state hotel tax receipts, and applied to the size of the El Paso hotel market. The estimate assumes a qualified hotel would not be operational until fiscal 2017.
Local Government Impact
Being a qualified hotel project under Section 2303.003(8)(C) as amended, the city of El Paso would be entitled to state sales tax and state hotel tax associated with a qualified hotel project under Section 151.429(h) of the Tax Code via Section 351.102(b) & (c) of the Tax Code. Such funds must be deposited in a suspense account outside the state treasury to be paid to the owner of the qualified hotel project.
Source Agencies: 304 Comptroller of Public Accounts
304 Comptroller of Public Accounts
LBB Staff: UP, KK, SD, AG
UP, KK, SD, AG