BILL ANALYSIS                                                                                                                                                                                                    



                                                                  SB 848
                                                                  Page  1


          SENATE THIRD READING
          SB 848 (Hollingsworth)
          As Amended  October 7, 2010
           2/3 vote.  Urgency 

           SENATE VOTE  :Vote not relevant  
           
           SUMMARY  : Makes various changes to the Revenue and Taxation Code  
          with respect to transient occupancy taxes. Specifically,  this  
          bill  :

          1)Specifies that that the transient occupancy tax applies only  
            to the rent received by the operator of a lodging  
            establishment.  Travel agents, booking agents and other  
            facilitating parties would not be considered operators.  As a  
            result, no amounts that are paid to a booking agent or other  
            intermediary would be subject to the tax levied by local  
            governments.

          2)Provides a legislative finding that the bill does not  
            constitute a change in, but is declaratory, of existing law.

          3)Urgency Clause.  Declares this bill to take effect immediately  
            as an urgency statute.

           FISCAL EFFECT  :  Would have no direct fiscal impact on the state  
          but potentially resulting in local government revenue losses of  
          approximately $100 annually.  Because the measure states that it  
          is declaratory of existing law, it could also result in  
          additional local government revenue losses due to the impact on  
          current cases involving the levying of the tax.


           Analysis Prepared by  : Mark Ibele / BUDGET / 916-319-2099 




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