84R12777 GRM-F
By: Raney H.B. No. 3629
A BILL TO BE ENTITLED
AN ACT
relating to use and allocation of municipal hotel occupancy tax
revenues for 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 (i) to read as follows:
(i) In addition to the purposes provided by Subsection (a),
a municipality that has a population of at least 75,000 but not more
than 95,000 and that is located in a county that has a population of
more than 160,000 but less than 200,000 may use revenue from the
municipal hotel tax to promote tourism and the convention and hotel
industry by constructing, operating, or expanding a sporting
related facility or sports field owned by the municipality, if the
majority of the events at the facility or fields are directly
related to a sporting event in which the majority of participants
are tourists who substantially increase economic activity at hotels
in the municipality.
SECTION 2. Subchapter B, Chapter 351, Tax Code, is amended
by adding Section 351.1078 to read as follows:
Sec. 351.1078. ALLOCATION OF REVENUE: CERTAIN
MUNICIPALITIES. (a) A municipality that spends municipal hotel
occupancy tax revenue as authorized by Section
351.101(a)(7)(B)(ii) or (i):
(1) may not use municipal hotel occupancy tax revenue
for the acquisition of land for the sports facility or sports fields
described by those provisions;
(2) shall annually determine and prepare a report on
the events held at the facility or fields, the number of hotel room
nights attributable to events held at the facility or fields, and
the amount of hotel revenue and municipal tax revenue attributable
to the sports events and tournaments held at the facilities or
fields for five years after the date the construction, operation,
expansion, or upgrade expenditures are completed; and
(3) may only spend hotel occupancy tax revenue for
operational expenses of the facility or fields if the costs are
directly related to a sporting event in which the majority of
participants are tourists who substantially increase economic
activity at hotels in or near the municipality.
(b) The municipality shall reimburse to the municipality's
hotel occupancy tax revenue fund from the municipality's general
fund any expenditure in excess of the amount of area hotel revenue
attributable to the construction, operation, expansion, and
upgrade of the sports facility or sports fields described by
Sections 351.101(a)(7)(B)(ii) and (i).
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.