By: Lyne (Senate Sponsor - Deuell) H.B. No. 2048
(In the Senate - Received from the House May 6, 2011;
May 9, 2011, read first time and referred to Committee on Finance;
May 17, 2011, reported favorably by the following vote: Yeas 14,
Nays 0; May 17, 2011, sent to printer.)
A BILL TO BE ENTITLED
AN ACT
relating to the collection and enforcement of state and local hotel
occupancy taxes.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subchapter F, Chapter 156, Tax Code, is amended
by adding Section 156.2513 to read as follows:
Sec. 156.2513. ALLOCATION OF REVENUE TO CERTAIN
MUNICIPALITIES AND COUNTIES. Not later than the last day of the
month following a calendar quarter, the comptroller shall:
(1) compute the amount of revenue, excluding penalties
and interest, derived from the collection of taxes imposed by this
chapter that resulted from documentation or other information
described by Section 351.008 or 352.008; and
(2) issue a warrant drawn on the general revenue fund
in the amount of 20 percent of the revenue computed under
Subdivision (1) to the municipality or county that provided the
documentation or other information.
SECTION 2. Sections 351.004(a), (a-1), (a-2), and (a-3),
Tax Code, are amended to read as follows:
(a) The [municipal attorney or other attorney acting for
the] municipality may bring suit against a person who is required to
collect the tax imposed by this chapter and pay the collections over
to the municipality, and who has failed to file a tax report or pay
the tax when due, to collect the tax not paid or to enjoin the person
from operating a hotel in the municipality until the tax is paid or
the report filed, as applicable, as provided by the court's
order. In addition to the amount of any tax owed under this
chapter, the person is liable to the municipality for:
(1) the municipality's reasonable attorney's fees;
(2) the costs of an audit conducted under Subsection
(a-1)(1), as determined by the municipality using a reasonable
rate, but only if:
(A) the tax has been delinquent for at least two
complete municipal fiscal quarters at the time the audit is
conducted; and
(B) the municipality has not received a
disbursement from the comptroller as provided by Section 156.2513
related to the person's concurrent state tax delinquency described
by Section 351.008; and
(3) a penalty equal to 15 percent of the total amount
of the tax owed if the tax has been delinquent for at least one
complete municipal fiscal quarter.
(a-1) If a person required to file a tax report under this
chapter does not file the report as required by the municipality,
the [municipal attorney or other attorney acting for the]
municipality may determine the amount of tax due under this chapter
by:
(1) conducting an audit of each hotel in relation to
which the person did not file the report as required by the
municipality; or
(2) using the tax report filed for the appropriate
reporting period under Section 156.151 in relation to that hotel.
(a-2) If the person did not file a tax report under Section
156.151 for that reporting period in relation to that hotel, the
[municipal attorney or other attorney acting for the] municipality
may estimate the amount of tax due by using the tax reports in
relation to that hotel filed during the previous calendar year
under this chapter or Section 156.151. An estimate made under this
subsection is prima facie evidence of the amount of tax due for that
period in relation to that hotel.
(a-3) The authority to conduct an audit under this section
is in addition to any other audit authority provided by statute,
charter, or ordinance. A municipality may directly perform an
audit authorized by this section or contract with another person to
perform the audit on an hourly rate or fixed-fee basis. A
municipality shall provide at least 30 days' written notice to a
person who is required to collect the tax imposed by this chapter
with respect to a hotel before conducting an audit of the hotel
under this section.
SECTION 3. Subchapter A, Chapter 351, Tax Code, is amended
by adding Section 351.008 to read as follows:
Sec. 351.008. CONCURRENT STATE TAX DELINQUENCY. (a) If,
as a result of an audit conducted under Section 351.004, a
municipality obtains documentation or other information showing a
failure to collect or pay when due both the tax imposed by this
chapter and the tax imposed by Chapter 156 on a person who pays for
the right to occupy a room or space in a hotel, the municipality
shall notify and submit the relevant information to the
comptroller.
(b) The comptroller shall review the information submitted
by a municipality under Subsection (a) and determine whether to
proceed with collection and enforcement efforts. If the
information results in the collection of a delinquent tax under
Chapter 156, the comptroller shall distribute a percentage of the
amount collected to the municipality as provided by Section
156.2513 to defray the cost of the municipal audit.
SECTION 4. Section 352.004, Tax Code, is amended by adding
Subsection (e) to read as follows:
(e) If a person required to file a tax report under this
chapter does not file the report as required by the county, the
county may determine the amount of tax due under this chapter by
conducting an audit of each hotel in relation to which the person
did not file the report as required by the county. A county may
directly perform an audit authorized under this subsection or
contract with another person to perform the audit on an hourly rate
or fixed-fee basis. A county shall provide at least 30 days'
written notice to a person who is required to collect the tax
imposed by this chapter with respect to a hotel before conducting an
audit of the hotel under this subsection.
SECTION 5. Subchapter A, Chapter 352, Tax Code, is amended
by adding Section 352.008 to read as follows:
Sec. 352.008. CONCURRENT STATE TAX DELINQUENCY. (a) If,
as a result of an audit conducted under Section 352.004, a county
obtains documentation or other information showing a failure to
collect or pay when due both the tax imposed by this chapter and the
tax imposed by Chapter 156 on a person who pays for the right to
occupy a room or space in a hotel, the county shall notify and
submit the relevant information to the comptroller.
(b) The comptroller shall review the information submitted
by a county under Subsection (a) and determine whether to proceed
with collection and enforcement efforts. If the information
results in the collection of a delinquent tax under Chapter 156, the
comptroller shall distribute a percentage of the amount collected
to the county as provided by Section 156.2513 to defray the cost of
the county audit.
SECTION 6. The change in law made by this Act applies only
to an audit performed by a municipality or county on or after the
effective date of this Act. An audit performed by a municipality or
county before the effective date of this Act is governed by the law
in effect immediately before that date, and that law is continued in
effect for that purpose.
SECTION 7. This Act takes effect September 1, 2011.
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