| 1 | 1 | | By: Zaffirini S.B. No. 1703 |
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| 2 | 2 | | (Lozano) |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | A BILL TO BE ENTITLED |
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| 6 | 6 | | AN ACT |
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| 7 | 7 | | relating to the use of hotel occupancy tax revenue in certain |
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| 8 | 8 | | municipalities and counties. |
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| 9 | 9 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 10 | 10 | | SECTION 1. Subchapter B, Chapter 351, Tax Code, is amended |
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| 11 | 11 | | by adding Section 351.1067 to read as follows: |
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| 12 | 12 | | Sec. 351.1067. ALLOCATION OF REVENUE: CERTAIN |
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| 13 | 13 | | MUNICIPALITIES IN COUNTIES THROUGH WHICH ARANSAS RIVER FLOWS. |
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| 14 | 14 | | (a) This section applies only to a municipality located in a |
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| 15 | 15 | | county with a population of less than 50,000 through which the |
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| 16 | 16 | | Aransas River flows and that has a municipality with a population of |
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| 17 | 17 | | more than 10,000. |
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| 18 | 18 | | (b) Notwithstanding any other provision of this chapter and |
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| 19 | 19 | | except as provided by Subsection (c), a municipality to which this |
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| 20 | 20 | | section applies may use not more than 50 percent of the revenue |
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| 21 | 21 | | derived from the municipal hotel occupancy tax to: |
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| 22 | 22 | | (1) pay for critical water utility infrastructure |
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| 23 | 23 | | repairs and improvements needed to address a severe drought that |
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| 24 | 24 | | affects hotel activity in the municipality; and |
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| 25 | 25 | | (2) pledge for the payment of and pay debt incurred for |
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| 26 | 26 | | a purpose described by Subdivision (1). |
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| 27 | 27 | | (c) A municipality to which this section applies may not, as |
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| 28 | 28 | | a result of spending under Subsection (b), reduce the amount of |
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| 29 | 29 | | municipal hotel occupancy tax revenue that the municipality spends |
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| 30 | 30 | | annually on advertising and promotion of the municipality to an |
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| 31 | 31 | | amount that is less than the average amount the municipality spent |
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| 32 | 32 | | for that purpose each year from 2010 to 2012. |
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| 33 | 33 | | (d) This section expires September 1, 2025. |
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| 34 | 34 | | SECTION 2. Subchapter B, Chapter 352, Tax Code, is amended |
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| 35 | 35 | | by adding Section 352.1041 to read as follows: |
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| 36 | 36 | | Sec. 352.1041. USE OF REVENUE: CERTAIN COUNTIES THROUGH |
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| 37 | 37 | | WHICH ARANSAS RIVER FLOWS. Notwithstanding any other provision of |
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| 38 | 38 | | this chapter, a county with a population of less than 50,000 through |
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| 39 | 39 | | which the Aransas River flows and that has a municipality with a |
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| 40 | 40 | | population of more than 10,000 and is authorized to impose a tax |
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| 41 | 41 | | under this chapter may use not more than 20 percent of the revenue |
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| 42 | 42 | | from a tax imposed under this chapter for projects to repair |
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| 43 | 43 | | transportation infrastructure damage that is directly attributable |
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| 44 | 44 | | to hotel activity in the county. |
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| 45 | 45 | | SECTION 3. This Act takes effect immediately if it receives |
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| 46 | 46 | | a vote of two-thirds of all the members elected to each house, as |
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| 47 | 47 | | provided by Section 39, Article III, Texas Constitution. If this |
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| 48 | 48 | | Act does not receive the vote necessary for immediate effect, this |
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| 49 | 49 | | Act takes effect September 1, 2013. |
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