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.