By: Zaffirini S.B. No. 1703
(In the Senate - Filed March 8, 2013; March 25, 2013, read
first time and referred to Committee on Economic Development;
April 15, 2013, reported adversely, with favorable Committee
Substitute by the following vote: Yeas 5, Nays 0; April 15, 2013,
sent to printer.)
COMMITTEE SUBSTITUTE FOR S.B. No. 1703 By: Davis
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 and
except as provided by Subsection (c), a municipality to which this
section applies may use not more than 50 percent of the revenue
derived from the municipal hotel occupancy tax to:
(1) pay for critical water utility infrastructure
repairs and improvements needed to address a severe drought that
affects hotel activity in the municipality; and
(2) pledge for the payment of and pay debt incurred for
a purpose described by Subdivision (1).
(c) A municipality to which this section applies may not, as
a result of spending under Subsection (b), reduce the amount of
municipal hotel occupancy tax revenue that the municipality spends
annually on advertising and promotion of the municipality to an
amount that is less than the average amount the municipality spent
for that purpose each year from 2010 to 2012.
(d) This section expires September 1, 2025.
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 not more than 20 percent of the revenue
from a tax imposed under this chapter for projects to repair
transportation infrastructure damage that is directly attributable
to hotel activity in 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.
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