HBA-NRS S.B. 1183 77(R)    BILL ANALYSIS


Office of House Bill AnalysisS.B. 1183
By: Van de Putte
Ways & Means
5/18/2001
Engrossed



BACKGROUND AND PURPOSE 

Current law allows a county that collects a hotel/motel tax to give a hotel
that collects the tax one percent of the tax as a collection fee. However,
car rental companies do not receive reimbursement for the expense of
collecting short-term motor vehicles taxes. Allowing car rental companies
to receive such a reimbursement may encourage early payment of taxes
collected and equalize tax incentives provided to travel service providers.
Senate Bill 1183 requires municipalities that impose a short-term motor
vehicle tax to give car rental companies one percent of the taxes
collected.  

RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that this bill does
not expressly delegate any additional rulemaking authority to a state
officer, department, agency, or institution.  

ANALYSIS

Senate Bill 1183 amends the Local Government Code to require a municipality
to allow a person who is required to collect and remit the tax imposed
under the short-term motor vehicle rental tax  one percent of the amount
collected and required to be remitted as reimbursement to the person for
the costs of collecting the tax. The bill provides that a person required
to collect and remit the tax imposed under the short-term motor vehicle
rental tax is not entitled to a one percent reimbursement unless the
municipality receives the amount required to be collected not later than
the 15th day after the end of the collection period. If the 15th day is on
a weekend or holiday, the bill provides that the municipality must receive
the amount required to be collected not later than the first working day
after the 15th day. If the person remits the amount required to be
collected by mail, the bill provides that the date postmarked by the United
States Postal Service is considered to be the date of receipt by the
municipality. 

EFFECTIVE DATE

September 1, 2001.