By: Oliveira (Senate Sponsor - Lucio) H.B. No. 1717
(In the Senate - Received from the House April 27, 2015;
April 28, 2015, read first time and referred to Committee on
Natural Resources and Economic Development; May 20, 2015, reported
favorably by the following vote: Yeas 11, Nays 0; May 20, 2015,
sent to printer.)
Click here to see the committee vote
A BILL TO BE ENTITLED
AN ACT
relating to the use of municipal hotel occupancy taxes by certain
municipalities for ecological and space exploration-related
tourism.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subchapter B, Chapter 351, Tax Code, is amended
by adding Section 351.1054 to read as follows:
Sec. 351.1054. ALLOCATION OF REVENUE FOR ECOLOGICAL TOURISM
AND SPACECRAFT AND SPACEPORT ACTIVITIES BY CERTAIN MUNICIPALITIES.
(a) In this section, "spacecraft" and "spaceport" have the
meanings assigned by Section 507.001, Local Government Code.
(b) Notwithstanding any other provision of this chapter, an
eligible barrier island coastal municipality may use revenue from
the municipal hotel occupancy tax for:
(1) promotional and event expenses for an ecological
tourism event, including an event for which the primary attraction
is traveling to an area of natural or ecological interest for the
purpose of observing and learning about wildlife and the area's
natural environment, if:
(A) a majority of the event's participants are
tourists; and
(B) the event substantially increases economic
activity at hotels and motels within or in the vicinity of the
municipality; and
(2) expenses directly related to:
(A) the acquisition of sites to observe
spacecraft and spaceport activities; and
(B) the construction, improvement, enlarging,
equipping, repairing, operation, and maintenance of facilities
utilized by hotel guests to observe and learn about spacecraft and
spaceport operations.
(c) A municipality may use for the purposes provided by
Subsections (b)(1) and (2) not more than the greater of:
(1) 15 percent of the hotel occupancy tax revenue
collected by the municipality; or
(2) the amount of tax received by the municipality at
the rate of one percent of the cost of a room.
SECTION 2. Section 351.1055(d), Tax Code, is amended to
read as follows:
(d) Notwithstanding any other provision of this chapter and
except as provided by Subsection (e), an eligible barrier island
coastal municipality shall use at least the amount of revenue
derived from the application of the tax at a rate of seven percent
of the cost of a room for the purposes authorized under Sections
351.101(a)(1) and (3) and Sections 351.1054(b)(1) and (2). If an
eligible barrier island coastal municipality uses hotel occupancy
tax revenue for a purpose described by Section 351.1054(b)(2), the
municipality may not reduce the amount of revenue that is used for
purposes described by Section 351.101(a)(3) to an amount that is
less than the average amount of revenue used by the municipality for
purposes described by Section 351.101(a)(3) during the 36-month
period that precedes the municipality's first use of revenue for a
purpose described by Section 351.1054(b)(2).
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.
* * * * *