LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 84TH LEGISLATIVE REGULAR SESSION May 22, 2015 TO: Honorable Troy Fraser, Chair, Senate Committee on Natural Resources & Economic Development FROM: Ursula Parks, Director, Legislative Budget Board IN RE:HB4037 by Guillen (relating to the authority of certain counties to impose a hotel occupancy tax and the use of revenue from the hotel occupancy tax by certain counties; authorizing an increase in the rate of a tax; authorizing the imposition of a tax.), Committee Report 2nd House, Substituted No fiscal implication to the State is anticipated. The bill would add Subsection (n) to Section 352.002 to provide that a county with a population ofmore than 300,000, and in which there is located all or part of the most populous militaryinstallation in the state, may impose a county hotel occupancy tax.The bill would add Subsection (p) to Section 352.003 to provide that in a county authorized toimpose the tax under new Subsection 352.002(n), the county tax rate in relation to a hotel locatedin a municipality that imposes a municipal hotel occupancy tax may not exceed a rate that, whenadded to the rate of the tax imposed by the municipality, exceeds the sum of the rate prescribed bySection 351.003(a) plus two percent.The bill would amend Section 352.003 of the Tax Code to allow a county that borders the Gulf of Mexico, has a population of less than 25,000, and is adjacent to a county with a population of more than 750,000 to impose a hotel occupancy tax not to exceed 9 percent of the price paid for a hotel room. The bill provides that the revenue from the tax imposed under this chapter, in addition to other uses authorized by law, may be used to acquire a site for and construct, improve, enlarge, equip, repair, operate, and maintain a visitor information center; and encourage, promote, and improve historical preservation and restoration efforts. The bill would also amend Section 352.1033(a) of the Tax Code to provide that a county that borders the Gulf of Mexico may also use hotel tax revenue to acquire a site for and construct, improve, enlarge, equip, repair, operate, and maintain a visitor information center; and encourage, promote, and improve historical preservation and restoration efforts. The bill would also amend Section 352.1033(c) by removing a requirement that a county bordering the Gulf of Mexico with a population of 50,000 or less must have at least one state park along with at least one national wildlife refuge. Local Government Impact Under the provisions of the bill Bell, Willacy and Kenedy Counties would be able to impose a county hotel occupancy tax. As the tax rate that might be set by the counties and the timing for the imposition of this tax are unknown, there would be an indeterminate revenue gain to Bell, Willacy and Kenedy Counties. The provisions of the bill would allow all counties that border the Gulf of Mexico additional uses for hotel occupancy tax revenue. An additional use for hotel tax revenue would have no effect on revenue, but could create a savings if another revenue source had been used for these purposes. Source Agencies:304 Comptroller of Public Accounts LBB Staff: UP, SZ, KK, SD, AG
LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 84TH LEGISLATIVE REGULAR SESSION
May 22, 2015
TO: Honorable Troy Fraser, Chair, Senate Committee on Natural Resources & Economic Development FROM: Ursula Parks, Director, Legislative Budget Board IN RE:HB4037 by Guillen (relating to the authority of certain counties to impose a hotel occupancy tax and the use of revenue from the hotel occupancy tax by certain counties; authorizing an increase in the rate of a tax; authorizing the imposition of a tax.), Committee Report 2nd House, Substituted
TO: Honorable Troy Fraser, Chair, Senate Committee on Natural Resources & Economic Development
FROM: Ursula Parks, Director, Legislative Budget Board
IN RE: HB4037 by Guillen (relating to the authority of certain counties to impose a hotel occupancy tax and the use of revenue from the hotel occupancy tax by certain counties; authorizing an increase in the rate of a tax; authorizing the imposition of a tax.), Committee Report 2nd House, Substituted
Honorable Troy Fraser, Chair, Senate Committee on Natural Resources & Economic Development
Honorable Troy Fraser, Chair, Senate Committee on Natural Resources & Economic Development
Ursula Parks, Director, Legislative Budget Board
Ursula Parks, Director, Legislative Budget Board
HB4037 by Guillen (relating to the authority of certain counties to impose a hotel occupancy tax and the use of revenue from the hotel occupancy tax by certain counties; authorizing an increase in the rate of a tax; authorizing the imposition of a tax.), Committee Report 2nd House, Substituted
HB4037 by Guillen (relating to the authority of certain counties to impose a hotel occupancy tax and the use of revenue from the hotel occupancy tax by certain counties; authorizing an increase in the rate of a tax; authorizing the imposition of a tax.), Committee Report 2nd House, Substituted
No fiscal implication to the State is anticipated.
No fiscal implication to the State is anticipated.
The bill would add Subsection (n) to Section 352.002 to provide that a county with a population ofmore than 300,000, and in which there is located all or part of the most populous militaryinstallation in the state, may impose a county hotel occupancy tax.The bill would add Subsection (p) to Section 352.003 to provide that in a county authorized toimpose the tax under new Subsection 352.002(n), the county tax rate in relation to a hotel locatedin a municipality that imposes a municipal hotel occupancy tax may not exceed a rate that, whenadded to the rate of the tax imposed by the municipality, exceeds the sum of the rate prescribed bySection 351.003(a) plus two percent.The bill would amend Section 352.003 of the Tax Code to allow a county that borders the Gulf of Mexico, has a population of less than 25,000, and is adjacent to a county with a population of more than 750,000 to impose a hotel occupancy tax not to exceed 9 percent of the price paid for a hotel room. The bill provides that the revenue from the tax imposed under this chapter, in addition to other uses authorized by law, may be used to acquire a site for and construct, improve, enlarge, equip, repair, operate, and maintain a visitor information center; and encourage, promote, and improve historical preservation and restoration efforts. The bill would also amend Section 352.1033(a) of the Tax Code to provide that a county that borders the Gulf of Mexico may also use hotel tax revenue to acquire a site for and construct, improve, enlarge, equip, repair, operate, and maintain a visitor information center; and encourage, promote, and improve historical preservation and restoration efforts. The bill would also amend Section 352.1033(c) by removing a requirement that a county bordering the Gulf of Mexico with a population of 50,000 or less must have at least one state park along with at least one national wildlife refuge.
Local Government Impact
Under the provisions of the bill Bell, Willacy and Kenedy Counties would be able to impose a county hotel occupancy tax. As the tax rate that might be set by the counties and the timing for the imposition of this tax are unknown, there would be an indeterminate revenue gain to Bell, Willacy and Kenedy Counties. The provisions of the bill would allow all counties that border the Gulf of Mexico additional uses for hotel occupancy tax revenue. An additional use for hotel tax revenue would have no effect on revenue, but could create a savings if another revenue source had been used for these purposes.
Source Agencies: 304 Comptroller of Public Accounts
304 Comptroller of Public Accounts
LBB Staff: UP, SZ, KK, SD, AG
UP, SZ, KK, SD, AG