84R25559 ADM-D
By: Paul H.B. No. 1585
A BILL TO BE ENTITLED
AN ACT
relating to the use of hotel occupancy tax revenue in certain
municipalities.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 351.101, Tax Code, is amended by adding
Subsection (j) to read as follows:
(j) In addition to the purposes provided by Subsection (a),
a municipality that has a population of not more than 5,000 and at
least part of which is located less than one-eighth of one mile from
a space center operated by an agency of the federal government may
use revenue from the municipal hotel occupancy tax for expenses,
including promotion expenses, directly related to a sporting event
in which the majority of participants are tourists who
substantially increase economic activity at hotels and motels
within the municipality or its vicinity.
SECTION 2. Subchapter B, Chapter 351, Tax Code, is amended
by adding Section 351.1071 to read as follows:
Sec. 351.1071. ALLOCATION OF REVENUE: CERTAIN
MUNICIPALITIES. (a) This section applies only to a municipality:
(1) that has a population of not more than 5,000; and
(2) at least part of which is located less than
one-eighth of one mile from a space center operated by an agency of
the federal government.
(b) In this section, "authorized facility" means a civic
center, marina, meeting room, hotel, parking facility, or visitor
center, including signage related to the facility, that:
(1) is owned by the municipality or a nonprofit
corporation acting on behalf of the municipality;
(2) is located not more than 1,000 feet from a hotel
property in the municipality; and
(3) substantially enhances hotel activity and
encourages tourism within the municipality.
(c) Subject to Subsection (d) and notwithstanding any other
provision of this chapter, a municipality to which this section
applies may use the amount of revenue derived from the application
of the tax under this chapter at a rate of three percent of the price
paid for a room in a hotel to:
(1) establish, acquire, purchase, construct, improve,
maintain, or operate an authorized facility; and
(2) pay bonds issued for a purpose described by
Subdivision (1).
(d) A municipality may not use municipal hotel occupancy tax
revenue on an authorized facility in a total amount that would
exceed the amount of that revenue attributable to events at that
facility for the 15-year period following the completion of
construction.
(e) A municipality that uses municipal hotel occupancy tax
revenue for a purpose authorized by this section shall publish
annually for the 15-year period following the completion of
construction at the authorized facility for which the revenue was
used a report on the Internet website of the municipality that
lists:
(1) for the preceding year, the events held at the
authorized facility with respect to which the tax revenue was used
and the number of hotel room nights attributable to those events;
and
(2) the amount of hotel revenue and municipal hotel
occupancy tax revenue attributable to events held at the authorized
facility in that year.
(f) If a municipality uses municipal hotel occupancy tax
revenue to establish, acquire, purchase, construct, or improve an
authorized facility, the municipality shall, on the 5th, 10th, and
15th anniversaries of the completion of construction at the
facility:
(1) calculate:
(A) the sum of:
(i) municipal hotel occupancy tax revenue
used to maintain or operate the facility in the past five years;
(ii) one-third of the amount of municipal
hotel occupancy tax revenue used to establish, acquire, purchase,
construct, or improve the authorized facility; and
(iii) any credits carried over from a
previous five-year period, as authorized by Subsection (g); and
(B) municipal hotel occupancy tax revenue
directly attributable to events held at the authorized facility in
the past five years; and
(2) if the amount calculated under Subdivision (1)(A)
exceeds the amount calculated under Subdivision (1)(B), reimburse
the municipality's hotel occupancy tax revenue fund from the
municipality's general fund in the amount of the difference.
(g) If, for a given five-year period, the amount calculated
under Subsection (f)(1)(B) exceeds the amount calculated under
Subsection (f)(1)(A), the municipality may carry forward the
difference to be used as a credit in a subsequent five-year period.
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, 2015.