| 1 | 1 | | 81R8009 JE-F |
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| 2 | 2 | | By: Lucio S.B. No. 989 |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | A BILL TO BE ENTITLED |
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| 6 | 6 | | AN ACT |
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| 7 | 7 | | relating to the municipal hotel occupancy tax imposed in certain |
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| 8 | 8 | | municipalities. |
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| 9 | 9 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 10 | 10 | | SECTION 1. Section 351.001, Tax Code, is amended by adding |
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| 11 | 11 | | Subdivision (11) to read as follows: |
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| 12 | 12 | | (11) "Eligible barrier island coastal municipality" |
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| 13 | 13 | | means a municipality: |
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| 14 | 14 | | (A) that borders on the Gulf of Mexico; |
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| 15 | 15 | | (B) that is located wholly on a barrier island; |
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| 16 | 16 | | and |
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| 17 | 17 | | (C) the boundaries of which are within 30 miles |
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| 18 | 18 | | of the United Mexican States. |
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| 19 | 19 | | SECTION 2. Section 351.003, Tax Code, is amended by adding |
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| 20 | 20 | | Subsection (d) to read as follows: |
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| 21 | 21 | | (d) The rate in an eligible barrier island coastal |
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| 22 | 22 | | municipality may not exceed 8-1/2 percent of the price paid for a |
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| 23 | 23 | | room. |
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| 24 | 24 | | SECTION 3. Section 351.1055(a), Tax Code, is amended by |
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| 25 | 25 | | adding Subdivision (4) to read as follows: |
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| 26 | 26 | | (4) "Erosion response project" has the meaning |
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| 27 | 27 | | assigned by Section 33.601, Natural Resources Code. |
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| 28 | 28 | | SECTION 4. Section 351.1055, Tax Code, is amended by adding |
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| 29 | 29 | | Subsections (d) and (e) to read as follows: |
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| 30 | 30 | | (d) Notwithstanding any other provision of this chapter and |
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| 31 | 31 | | except as provided by Subsection (e), an eligible barrier island |
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| 32 | 32 | | coastal municipality may use all or any portion of the revenue |
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| 33 | 33 | | derived from the municipal hotel occupancy tax: |
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| 34 | 34 | | (1) to clean and maintain the beaches in the |
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| 35 | 35 | | municipality; |
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| 36 | 36 | | (2) to provide beach security within the municipality; |
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| 37 | 37 | | (3) for any of the purposes permitted or allowed by |
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| 38 | 38 | | Section 1504.001, Government Code; |
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| 39 | 39 | | (4) for any purpose allowed by Section 351.105, |
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| 40 | 40 | | without regard to the rate of the tax in the municipality; |
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| 41 | 41 | | (5) for any erosion response project; |
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| 42 | 42 | | (6) for beautifying or improving the safety of and |
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| 43 | 43 | | access to the portion of State Highway 100 that is within the |
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| 44 | 44 | | boundaries of the municipality; or |
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| 45 | 45 | | (7) to pay the principal of or interest on bonds or |
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| 46 | 46 | | notes issued for any of these purposes. |
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| 47 | 47 | | (e) An eligible barrier island coastal municipality shall |
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| 48 | 48 | | use at least the amount of revenue derived from the application of |
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| 49 | 49 | | the tax at a rate of one-half of one percent of the cost of a room |
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| 50 | 50 | | for erosion control projects. |
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| 51 | 51 | | SECTION 5. This Act takes effect immediately if it receives |
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| 52 | 52 | | a vote of two-thirds of all the members elected to each house, as |
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| 53 | 53 | | provided by Section 39, Article III, Texas Constitution. If this |
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| 54 | 54 | | Act does not receive the vote necessary for immediate effect, this |
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| 55 | 55 | | Act takes effect September 1, 2009. |
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