By: Zaffirini S.B. No. 1703
A BILL TO BE ENTITLED
AN ACT
relating to the use of hotel occupancy tax revenue in certain
municipalities and counties.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subchapter B, Chapter 351, Tax Code, is amended
by adding Section 351.1067 to read as follows:
Sec. 351.1067. ALLOCATION OF REVENUE: CERTAIN
MUNICIPALITIES IN COUNTIES THROUGH WHICH ARANSAS RIVER
FLOWS. (a) This section applies only to a municipality located in
a county with a population of less than 50,000 through which the
Aransas River flows and that has a municipality with a population of
more than 10,000.
(b) Notwithstanding any other provision of this chapter, a
municipality to which this section applies may use up to 50 percent
of the hotel tax for a period of up to twelve years for the critical
water infrastructure to address a severe drought that would
directly impair area hotel activity. A municipality to which this
section applies may not reduce the amount of revenue that it uses
for a purpose described by Section 351.101 (a) (3) to an amount that
is less than the average amount of revenue used by the municipality
for that purpose during the 36-month period that precedes the
municipality's use of revenue under this subsection.
SECTION 2. Subchapter B, Chapter 352, Tax Code, is amended
by adding Section 352.1041 to read as follows:
Sec. 352.1041. USE OF REVENUE: CERTAIN COUNTIES THROUGH
WHICH ARANSAS RIVER FLOWS. Notwithstanding any other provision of
this chapter, a county with a population of less than 50,000 through
which the Aransas River flows and that has a municipality with a
population of more than 10,000 and is authorized to impose a tax
under this chapter may use up to 20 percent of the revenue from a tax
imposed under this chapter to address certain transportation
infrastructure damage that is directly attributable to hotel
activity within the county.
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, 2013.