By: Aliseda (Senate Sponsor - Zaffirini) H.B. No. 1315
(In the Senate - Received from the House May 6, 2011;
May 9, 2011, read first time and referred to Committee on Economic
Development; May 20, 2011, reported adversely, with favorable
Committee Substitute by the following vote: Yeas 5, Nays 0;
May 20, 2011, sent to printer.)
COMMITTEE SUBSTITUTE FOR H.B. No. 1315 By: Eltife
A BILL TO BE ENTITLED
AN ACT
relating to the use of municipal hotel occupancy tax revenue in
certain municipalities.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subchapter B, Chapter 351, Tax Code, is amended
by adding Section 351.1066 to read as follows:
Sec. 351.1066. ALLOCATION OF REVENUE: CERTAIN
MUNICIPALITIES. (a) This section applies only to:
(1) a municipality with a population of at least 3,500
but less than 5,500 that is the county seat of a county with a
population of less than 50,000 that borders a county with a
population of more than 1.6 million; and
(2) a municipality with a population of at least 2,900
but less than 3,500 that is the county seat of a county with a
population of less than 22,000 that is bordered by the Trinity River
and includes a state park and a portion of a wildlife management
area.
(b) Notwithstanding any other provision of this chapter, a
municipality to which this section applies may use all or any
portion of the revenue derived from the municipal hotel occupancy
tax for:
(1) a business recruitment project to substantially
enhance hotel activity and encourage tourism; and
(2) the construction, enlarging, equipping,
improvement, maintenance, repairing and operation of a
recreational facility to substantially enhance hotel activity and
encourage tourism.
SECTION 2. Section 351.003, Tax Code, is amended by adding
Subsections (e) and (f) to read as follows:
(e) The rate in a municipality that has a population of more
than 95,000 and is in a county that borders Lake Palestine and has a
population of more than 200,000 may not exceed nine percent of the
price paid for a room. The municipality shall allocate for the
construction, expansion, maintenance, or operation of convention
center facilities 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.
(f) The rate in a municipality that has a population of at
least 80,000 and is partly located in a county that borders the
State of Louisiana and has a population of at least 60,000 may not
exceed nine percent of the price paid for a room. The municipality
shall allocate for the construction, expansion, maintenance, or
operation of convention center facilities 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.
SECTION 3. 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, 2011.
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