LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 89TH LEGISLATIVE REGULAR SESSION April 12, 2025 TO: Honorable Morgan Meyer, Chair, House Committee on Ways & Means FROM: Jerry McGinty, Director, Legislative Budget Board IN RE: HB5596 by Leo Wilson (Relating to the calculation of the voter-approval tax rate for certain municipalities that receive municipal hotel occupancy tax revenue.), As Introduced No fiscal implication to the State is anticipated. For the purposes of Chapter 26 of the Tax Code the bill would define the following: "eligible coastal municipality" to mean a home-rule municipality that the borders on the Gulf of Mexico and has a population less than 80,000 and has created a park board of trustees under the Local Government Code; "misspent hotel occupancy tax revenue" to mean an amount equal to the amount of municipal hotel occupancy tax revenue received by an eligible coastal municipality during the preceding tax year that was not distributed to the municipality's park board of trustees and was spent by the municipality for any purpose; and "misspent hotel occupancy tax revenue rate" to mean the rate expressed in dollars per $100 of taxable value according to the following formula: Misspent Hotel Occupancy Tax Revenue Rate = Misspent Hotel Occupancy Tax Revenue / Current Total Value.The bill would define the "voter-approval tax rate for an eligible coastal municipality" in Chapter 26 of the Tax Code to be equal the voter-approval tax rate for a taxing unit other than a special taxing unit under current law less the misspent hotel occupancy tax revenue rate. Local Government ImpactThe voter-approval tax rate for an eligible coastal municipality could be reduced relative to current law to the extent the eligible coastal municipality spent municipal hotel occupancy tax revenue in the preceding tax year. Source Agencies: b > td > LBB Staff: b > td > JMc, KK, SD, BRI
LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 89TH LEGISLATIVE REGULAR SESSION
April 12, 2025
TO: Honorable Morgan Meyer, Chair, House Committee on Ways & Means FROM: Jerry McGinty, Director, Legislative Budget Board IN RE: HB5596 by Leo Wilson (Relating to the calculation of the voter-approval tax rate for certain municipalities that receive municipal hotel occupancy tax revenue.), As Introduced
TO: Honorable Morgan Meyer, Chair, House Committee on Ways & Means
FROM: Jerry McGinty, Director, Legislative Budget Board
IN RE: HB5596 by Leo Wilson (Relating to the calculation of the voter-approval tax rate for certain municipalities that receive municipal hotel occupancy tax revenue.), As Introduced
Honorable Morgan Meyer, Chair, House Committee on Ways & Means
Honorable Morgan Meyer, Chair, House Committee on Ways & Means
Jerry McGinty, Director, Legislative Budget Board
Jerry McGinty, Director, Legislative Budget Board
HB5596 by Leo Wilson (Relating to the calculation of the voter-approval tax rate for certain municipalities that receive municipal hotel occupancy tax revenue.), As Introduced
HB5596 by Leo Wilson (Relating to the calculation of the voter-approval tax rate for certain municipalities that receive municipal hotel occupancy tax revenue.), As Introduced
No fiscal implication to the State is anticipated.
No fiscal implication to the State is anticipated.
For the purposes of Chapter 26 of the Tax Code the bill would define the following: "eligible coastal municipality" to mean a home-rule municipality that the borders on the Gulf of Mexico and has a population less than 80,000 and has created a park board of trustees under the Local Government Code; "misspent hotel occupancy tax revenue" to mean an amount equal to the amount of municipal hotel occupancy tax revenue received by an eligible coastal municipality during the preceding tax year that was not distributed to the municipality's park board of trustees and was spent by the municipality for any purpose; and "misspent hotel occupancy tax revenue rate" to mean the rate expressed in dollars per $100 of taxable value according to the following formula: Misspent Hotel Occupancy Tax Revenue Rate = Misspent Hotel Occupancy Tax Revenue / Current Total Value.The bill would define the "voter-approval tax rate for an eligible coastal municipality" in Chapter 26 of the Tax Code to be equal the voter-approval tax rate for a taxing unit other than a special taxing unit under current law less the misspent hotel occupancy tax revenue rate.
"eligible coastal municipality" to mean a home-rule municipality that the borders on the Gulf of Mexico and has a population less than 80,000 and has created a park board of trustees under the Local Government Code;
"misspent hotel occupancy tax revenue" to mean an amount equal to the amount of municipal hotel occupancy tax revenue received by an eligible coastal municipality during the preceding tax year that was not distributed to the municipality's park board of trustees and was spent by the municipality for any purpose; and
"misspent hotel occupancy tax revenue rate" to mean the rate expressed in dollars per $100 of taxable value according to the following formula: Misspent Hotel Occupancy Tax Revenue Rate = Misspent Hotel Occupancy Tax Revenue / Current Total Value.
The bill would define the "voter-approval tax rate for an eligible coastal municipality" in Chapter 26 of the Tax Code to be equal the voter-approval tax rate for a taxing unit other than a special taxing unit under current law less the misspent hotel occupancy tax revenue rate.
The bill would define the "voter-approval tax rate for an eligible coastal municipality" in Chapter 26 of the Tax Code to be equal the voter-approval tax rate for a taxing unit other than a special taxing unit under current law less the misspent hotel occupancy tax revenue rate.
Local Government Impact
The voter-approval tax rate for an eligible coastal municipality could be reduced relative to current law to the extent the eligible coastal municipality spent municipal hotel occupancy tax revenue in the preceding tax year.
Source Agencies: b > td >
LBB Staff: b > td > JMc, KK, SD, BRI
JMc, KK, SD, BRI