By: Brown of Brazos (Senate Sponsor - Ogden) H.B. No. 4661
(In the Senate - Received from the House May 6, 2009;
May 7, 2009, read first time and referred to Committee on Finance;
May 15, 2009, reported favorably by the following vote: Yeas 10,
Nays 0; May 15, 2009, sent to printer.)
A BILL TO BE ENTITLED
AN ACT
relating to the rate of the municipal hotel occupancy tax in certain
municipalities and to the use of certain revenue from the tax.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subchapter A, Chapter 351, Tax Code, is amended
by adding Section 351.0035 to read as follows:
Sec. 351.0035. TAX RATE AND USE IN CERTAIN MUNICIPALITIES.
(a) The tax imposed by this chapter in a home-rule municipality
that was originally chartered in or after 1938, that is home to a
major state university, and that is located in a county bordered by
the Brazos and Navasota Rivers, may be imposed at any rate not to
exceed 7.75 percent of the price paid for a room in a hotel.
(b) The municipality shall allocate for the construction of
a convention center in the municipality all revenue received by the
municipality that is derived from the application of the tax at a
rate of more than seven percent of the price paid for a room in a
hotel.
(c) The municipality may not increase the rate of the tax to
a rate above seven percent before the date the municipality
executes a contract for the construction of the convention center.
(d) This section expires on the date the governing body of
the municipality certifies that all debt relating to the convention
center payable from the tax, including interest and any costs
relating to the debt, has been paid in full or a deposit has been
made and an escrow agreement in relation to the debt has been
executed.
SECTION 2. This Act takes effect immediately if it receives
a vote of two-thirds of all the members elected to each house, as
provided by Section 39, Article III, Texas Constitution. If this
Act does not receive the vote necessary for immediate effect, this
Act takes effect September 1, 2009.
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