By: Rodriguez S.B. No. 1696
A BILL TO BE ENTITLED
AN ACT
relating to the short-term motor vehicle rental tax used to finance
certain athletic events.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 334.353, Local Government Code, is
amended by amending Subsection (c) and adding Subsection (d) to
read as follows:
(c) The tax authorized by this subchapter is imposed at a
rate in increments of one-eighth of one percent, not to exceed nine
percent, on the gross rental receipts from the rental in the
municipality of a motor vehicle.
(d) Except as otherwise provided by this subchapter,
Subchapter E applies to the tax imposed under this subchapter.
SECTION 2. Section 334.354, Local Government Code, is
amended by adding Subsection (b) to read as follows:
Sec. 334.354. USE OF REVENUE. (a) Notwithstanding any
other provision of this chapter, the municipality may use revenue
from the tax to:
(1) pay the costs of collecting the tax;
(2) operate one or more athletic events in the
municipality; and
(3) pay costs associated with an athletic event in the
municipality, including paying the costs of planning, acquiring,
establishing, developing, advertising, promoting, conducting,
sponsoring, or otherwise supporting the event.
(b) not less than one percent of the gross rental receipts
shall be used for repair and maintenance of the facilities used for
the athletic event.
SECTION 3. Subchapter J, Chapter 334, Local Government
Code, is amended by adding Sections 334.355 and 334.356 to read as
follows:
Sec. 334.355. RATE INCREASE. A municipality that has
adopted a tax under this subchapter at a rate of less than nine
percent may by ordinance increase the rate of the tax to a maximum
of nine percent if the increase is approved by a majority of the
registered voters of that municipality voting at an election called
and held for that purpose.
Sec. 334.356. EFFECTIVE DATE AND ENDING DATE OF TAX. (a) A
tax imposed under this subchapter or a change in a tax rate takes
effect on the date prescribed by the ordinance or order imposing the
tax or changing the rate.
(b) A municipality may impose a tax under this subchapter
only if an athletic event is held annually in the municipality.
SECTION 4. This Act takes effect September 1, 2013.