By: Raney (Senate Sponsor - Schwertner) H.B. No. 3629
(In the Senate - Received from the House May 4, 2015;
May 5, 2015, read first time and referred to Committee on Natural
Resources and Economic Development; May 22, 2015, reported
favorably by the following vote: Yeas 10, Nays 0; May 22, 2015,
sent to printer.)
Click here to see the committee vote
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 field 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(i):
(1) may not use municipal hotel occupancy tax revenue
for the acquisition of land for the sporting related facility or
sports field described by that subsection;
(2) shall annually determine and prepare and publish
on the municipality's Internet website a report on the events held
at the facility or field, the number of hotel room nights
attributable to events held at the facility or field, and the amount
of hotel revenue and municipal tax revenue attributable to the
sports events and tournaments held at the facility or field for five
years after the date the construction expenditures are completed;
and
(3) may only spend hotel occupancy tax revenue for
operational expenses of the facility or field 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 sporting events held at the sporting related
facility or sports field described by Section 351.101(i) for five
years after the date the construction or expansion of the facility
or field described by that subsection is completed.
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.
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