Texas 2017 - 85th Regular

Texas House Bill HB1300 Compare Versions

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1	1	By: Springer, Guillen (Senate Sponsor - Estes) H.B. No. 1300
2	2	(In the Senate - Received from the House May 15, 2017;
3	3	May 17, 2017, read first time and referred to Committee on Natural
4	4	Resources & Economic Development; May 21, 2017, reported
5	5	adversely, with favorable Committee Substitute by the following
6	6	vote: Yeas 7, Nays 2, 1 present not voting; May 21, 2017, sent to
7	7	printer.)
8	8	Click here to see the committee vote
9	9	COMMITTEE SUBSTITUTE FOR H.B. No. 1300 By: Estes
10	10
11	11
12	12	A BILL TO BE ENTITLED
13	13	AN ACT
14	14	relating to the collection and use of certain hotel occupancy
15	15	taxes.
16	16	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
17	17	SECTION 1. Section 334.001, Local Government Code, is
18	18	amended by amending Subdivisions (1) and (4) and adding Subdivision
19	19	(1-a) to read as follows:
20	20	(1) "Active transportation" means transportation that
21	21	is wholly or primarily powered by human energy. The term includes
22	22	walking, running, and bicycling.
23	23	(1-a) "Approved venue project" means a sports and
24	24	community venue project that has been approved under this chapter
25	25	by the voters of a municipality or county.
26	26	(4) "Venue" means:
27	27	(A) an arena, coliseum, stadium, or other type of
28	28	area or facility:
29	29	(i) that is used or is planned for use for
30	30	one or more professional or amateur sports events, community
31	31	events, or other sports events, including rodeos, livestock shows,
32	32	agricultural expositions, promotional events, and other civic or
33	33	charitable events; and
34	34	(ii) for which a fee for admission to the
35	35	events is charged or is planned to be charged;
36	36	(B) a convention center, convention center
37	37	facility as defined by Section 351.001(2) or 352.001(2), Tax Code,
38	38	or related improvement such as a civic center hotel, theater, opera
39	39	house, music hall, rehearsal hall, park, zoological park, museum,
40	40	aquarium, or plaza located in the vicinity of a convention center or
41	41	facility owned by a municipality or a county;
42	42	(C) a tourist development area [along an inland
43	43	waterway];
44	44	(D) a municipal parks and recreation system, or
45	45	improvements or additions to a parks and recreation system, or an
46	46	area or facility, including an area or facility for active
47	47	transportation use, that is part of a municipal parks and
48	48	recreation system;
49	49	(E) a project authorized by Section 4A or 4B,
50	50	Development Corporation Act of 1979 (Article 5190.6, Vernon's Texas
51	51	Civil Statutes), as that Act existed on September 1, 1997; [and]
52	52	(F) a watershed protection and preservation
53	53	project; a recharge, recharge area, or recharge feature protection
54	54	project; a conservation easement; or an open-space preservation
55	55	program intended to protect water; and
56	56	(G) an airport facility located in a municipality
57	57	located on the international border.
58	58	SECTION 2. Section 334.1015, Local Government Code, is
59	59	amended to read as follows:
60	60	Sec. 334.1015. APPLICATION. (a) Except as provided by
61	61	Subsection (b), this [This] subchapter does not apply to the
62	62	financing of a venue project that is an area or facility that is
63	63	part of a municipal parks and recreation system.
64	64	(b) A municipality located on the international border may
65	65	finance a venue project described by Section 334.001(4)(D) with the
66	66	revenue from a tax imposed under this subchapter.
67	67	SECTION 3. Section 334.2515, Local Government Code, is
68	68	amended to read as follows:
69	69	Sec. 334.2515. APPLICATION. Except as provided by Section
70	70	334.2516, this subchapter does not apply to the financing of a venue
71	71	project that is:
72	72	(1) an area described by Section 334.001(4)(C);
73	73	(2) an area or facility that is part of a municipal
74	74	parks and recreation system as described by Section 334.001(4)(D);
75	75	[or]
76	76	(3) [(2)] a project described by Section
77	77	334.001(4)(E), except for a project [projects] described by [in]
78	78	Section 334.001(4)(A); or
79	79	(4) a facility described by Section 334.001(4)(G).
80	80	SECTION 4. Section 351.005, Tax Code, is amended to read as
81	81	follows:
82	82	Sec. 351.005. REIMBURSEMENT FOR EXPENSES OF TAX COLLECTION
83	83	AND USE OF ELECTRONIC TAX ADMINISTRATION SYSTEM. (a) A
84	84	municipality may permit a person who is required to collect and pay
85	85	over to the municipality the tax authorized by this chapter to
86	86	withhold not more than one percent of the amount of the tax
87	87	collected and required to be reported as reimbursement to the
88	88	person for the cost of [costs in] collecting the tax [and, if
89	89	applicable, the use of an electronic tax administration system
90	90	described by Section 351.1012].
91	91	(b) If a municipality uses revenue derived from the tax
92	92	authorized by this chapter to create, maintain, operate, or
93	93	administer an electronic tax administration system as authorized by
94	94	Section 351.1012, the municipality shall permit a person who is
95	95	required to collect and pay over to the municipality the tax
96	96	authorized by this chapter to withhold not more than one percent of
97	97	the amount of the tax collected and required to be reported as
98	98	reimbursement to the person for the cost of collecting the tax.
99	99	(c) The municipality may provide that the reimbursement
100	100	provided or required by this section be forfeited because of a
101	101	failure to pay the tax or to file a report as required by the
102	102	municipality.
103	103	SECTION 5. (a) Section 351.101(a), Tax Code, as amended by
104	104	Chapters 666 (H.B. 3772) and 979 (H.B. 3615), Acts of the 84th
105	105	Legislature, Regular Session, 2015, is reenacted and amended to
106	106	read as follows:
107	107	(a) Revenue from the municipal hotel occupancy tax may be
108	108	used only to promote tourism and the convention and hotel industry,
109	109	and that use is limited to the following:
110	110	(1) the acquisition of sites for and the construction,
111	111	improvement, enlarging, equipping, repairing, operation, and
112	112	maintenance of convention center facilities or visitor information
113	113	centers, or both;
114	114	(2) the furnishing of facilities, personnel, and
115	115	materials for the registration of convention delegates or
116	116	registrants;
117	117	(3) advertising and conducting solicitations and
118	118	promotional programs to attract tourists and convention delegates
119	119	or registrants to the municipality or its vicinity;
120	120	(4) the encouragement, promotion, improvement, and
121	121	application of the arts, including instrumental and vocal music,
122	122	dance, drama, folk art, creative writing, architecture, design and
123	123	allied fields, painting, sculpture, photography, graphic and craft
124	124	arts, motion pictures, radio, television, tape and sound recording,
125	125	and other arts related to the presentation, performance, execution,
126	126	and exhibition of these major art forms;
127	127	(5) historical restoration and preservation projects
128	128	or activities or advertising and conducting solicitations and
129	129	promotional programs to encourage tourists and convention
130	130	delegates to visit preserved historic sites or museums:
131	131	(A) at or in the immediate vicinity of convention
132	132	center facilities or visitor information centers; or
133	133	(B) located elsewhere in the municipality or its
134	134	vicinity that would be frequented by tourists and convention
135	135	delegates;
136	136	(6) for a municipality located in a county with a
137	137	population of one million or less, expenses, including promotion
138	138	expenses, directly related to a sporting event in which the
139	139	majority of participants are tourists who substantially increase
140	140	economic activity at hotels and motels within the municipality or
141	141	its vicinity;
142	142	(7) subject to Section 351.1076, the promotion of
143	143	tourism by the enhancement and upgrading of existing sports
144	144	facilities or fields, including facilities or fields for baseball,
145	145	softball, soccer, flag football, and rodeos, if:
146	146	(A) the municipality owns the facilities or
147	147	fields;
148	148	(B) the municipality:
149	149	(i) has a population of 80,000 or more and
150	150	is located in a county that has a population of 350,000 or less;
151	151	(ii) has a population of at least 75,000 but
152	152	not more than 95,000 and is located in a county that has a
153	153	population of less than 200,000 but more than 160,000;
154	154	(iii) has a population of at least 36,000
155	155	but not more than 39,000 and is located in a county that has a
156	156	population of 100,000 or less that is not adjacent to a county with
157	157	a population of more than two million;
158	158	(iv) has a population of at least 13,000 but
159	159	less than 39,000 and is located in a county that has a population of
160	160	at least 200,000;
161	161	(v) has a population of at least 70,000 but
162	162	less than 90,000 and no part of which is located in a county with a
163	163	population greater than 150,000;
164	164	(vi) is located in a county that:
165	165	(a) is adjacent to the Texas-Mexico
166	166	border;
167	167	(b) has a population of at least
168	168	500,000; and
169	169	(c) does not have a municipality with
170	170	a population greater than 500,000;
171	171	(vii) has a population of at least 25,000
172	172	but not more than 26,000 and is located in a county that has a
173	173	population of 90,000 or less;
174	174	(viii) [(ix)] is located in a county that
175	175	has a population of not more than 300,000 and in which a component
176	176	university of the University of Houston System is located; [or]
177	177	(ix) [(x)] has a population of at least
178	178	40,000 and the San Marcos River flows through the municipality; or
179	179	(x) contains an intersection of Interstates
180	180	35E and 35W and at least two public universities; and
181	181	(C) the sports facilities and fields have been
182	182	used, in the preceding calendar year, a combined total of more than
183	183	10 times for district, state, regional, or national sports
184	184	tournaments;
185	185	(8) for a municipality with a population of at least
186	186	70,000 but less than 90,000, no part of which is located in a county
187	187	with a population greater than 150,000, the construction,
188	188	improvement, enlarging, equipping, repairing, operation, and
189	189	maintenance of a coliseum or multiuse facility;
190	190	(9) signage directing the public to sights and
191	191	attractions that are visited frequently by hotel guests in the
192	192	municipality;
193	193	(10) the construction, improvement, enlarging,
194	194	equipping, repairing, operation, and maintenance of a coliseum or
195	195	multiuse facility, if the municipality:
196	196	(A) has a population of at least 90,000 but less
197	197	than 120,000; and
198	198	(B) is located in two counties, at least one of
199	199	which contains the headwaters of the San Gabriel River; and
200	200	(11) for a municipality with a population of more than
201	201	175,000 but less than 225,000 that is located in two counties, each
202	202	of which has a population of less than 200,000, the construction,
203	203	improvement, enlarging, equipping, repairing, operation, and
204	204	maintenance of a coliseum or multiuse facility and related
205	205	infrastructure or a venue, as defined by Section 334.001(4), Local
206	206	Government Code, that is related to the promotion of tourism.
207	207	(b) To the extent of any conflict, this section controls
208	208	over another Act of the 85th Legislature, Regular Session, 2017,
209	209	relating to nonsubstantive additions to and corrections in enacted
210	210	codes.
211	211	(c) This section takes effect immediately if this Act
212	212	receives a vote of two-thirds of all the members elected to each
213	213	house, as provided by Section 39, Article III, Texas Constitution.
214	214	If this Act does not receive the vote necessary for this section to
215	215	have immediate effect, this section takes effect September 1, 2017.
216	216	SECTION 6. Section 351.101, Tax Code, is amended by adding
217	217	Subsection (o) to read as follows:
218	218	(o) In addition to the purposes provided by Subsection (a),
219	219	a municipality that has a population of not more than 10,000, that
220	220	contains an outdoor gear and sporting goods retailer with retail
221	221	space larger than 175,000 square feet, and that hosts an annual
222	222	wiener dog race may use revenue from the municipal hotel occupancy
223	223	tax to promote tourism and the convention and hotel industry by
224	224	constructing, operating, or expanding a sporting related facility
225	225	or sports field owned by the municipality, if the majority of the
226	226	events at the facility or field are directly related to a sporting
227	227	event in which the majority of participants are tourists who
228	228	substantially increase economic activity at hotels in the
229	229	municipality. If a municipality to which this subsection applies
230	230	uses revenue derived from the municipal hotel occupancy tax for a
231	231	purpose described by this subsection, the municipality may not
232	232	reduce the percentage of revenue from that tax allocated for a
233	233	purpose described by Subsection (a)(3) to a percentage that is less
234	234	than the average percentage of that revenue allocated by the
235	235	municipality for that purpose during the 36-month period preceding
236	236	the date the municipality begins using the revenue for a purpose
237	237	described by this subsection.
238	238	SECTION 7. Section 351.1012(a), Tax Code, is amended to
239	239	read as follows:
240	240	(a) Notwithstanding any other provision of this chapter, a
241	241	municipality may spend each year not more than the lesser of one
242	242	percent or $75,000 of the revenue derived from the tax authorized by
243	243	this chapter during that year for the creation, maintenance,
244	244	operation, and administration of an electronic tax administration
245	245	system. A municipality may not use revenue the municipality is
246	246	authorized to spend under this subsection to conduct an audit.
247	247	SECTION 8. Section 351.1078, Tax Code, is amended to read as
248	248	follows:
249	249	Sec. 351.1078. ALLOCATION OF REVENUE: CERTAIN
250	250	MUNICIPALITIES. (a) A municipality that spends municipal hotel
251	251	occupancy tax revenue as authorized by Section 351.101(i) or (o):
252	252	(1) may not use municipal hotel occupancy tax revenue
253	253	for the acquisition of land for the sporting related facility or
254	254	sports field described by that subsection;
255	255	(2) shall annually determine and prepare and publish
256	256	on the municipality's Internet website a report on the events held
257	257	at the facility or field, the number of hotel room nights
258	258	attributable to events held at the facility or field, and the amount
259	259	of hotel revenue and municipal tax revenue attributable to the
260	260	sports events and tournaments held at the facility or field for five
261	261	years after the date the construction expenditures are completed;
262	262	and
263	263	(3) may only spend hotel occupancy tax revenue for
264	264	operational expenses of the facility or field if the costs are
265	265	directly related to a sporting event in which the majority of
266	266	participants are tourists who substantially increase economic
267	267	activity at hotels in or near the municipality.
268	268	(b) The municipality shall reimburse to the municipality's
269	269	hotel occupancy tax revenue fund from the municipality's general
270	270	fund any expenditure in excess of the amount of area hotel revenue
271	271	attributable to sporting events held at the sporting related
272	272	facility or sports field described by Section 351.101(i) or (o) for
273	273	five years after the date the construction or expansion of the
274	274	facility or field described by that subsection is completed.
275	275	SECTION 9. Section 352.103, Tax Code, is amended to read as
276	276	follows:
277	277	Sec. 352.103. USE OF REVENUE: COUNTIES WITH NO
278	278	MUNICIPALITY. (a) Except as provided by Subsection (b), the [The]
279	279	revenue from a tax imposed under this chapter by a county that has
280	280	no municipality may be used only for:
281	281	(1) the purposes provided by Sections 351.101(a)(1),
282	282	(2), and (4);
283	283	(2) advertising for general promotional and tourist
284	284	advertising of the county and conducting a solicitation program to
285	285	attract conventions and visitors either by the county or through
286	286	contracts with persons or organizations selected by the
287	287	commissioners court; and
288	288	(3) historical preservation and restoration.
289	289	(b) Notwithstanding any other provision of this chapter, a
290	290	county described by Subsection (a) that owns an airport may use
291	291	revenue from a tax imposed under this chapter for repairs and
292	292	improvements to the county airport or reimbursement for repairs and
293	293	improvements to the airport.
294	294	(c) A county to which Subsection (b) applies may not use
295	295	revenue from a tax imposed under this chapter for a purpose
296	296	described by Subsection (b) in a total amount that would exceed the
297	297	amount of hotel revenue in the county that is likely to be
298	298	reasonably attributable to guests traveling through the airport
299	299	during the 15-year period beginning on the date the county first
300	300	uses the tax revenue for that purpose.
301	301	(d) A county to which Subsection (b) applies may not use
302	302	revenue from a tax imposed under this chapter for a purpose
303	303	described by Subsection (b) after the 10th anniversary of the date
304	304	the county first uses that revenue for that purpose.
305	305	SECTION 10. The change in law made by this Act does not
306	306	affect tax liability accruing before the effective date of this
307	307	Act. That liability continues in effect as if this Act had not been
308	308	enacted, and the former law is continued in effect for the
309	309	collection of taxes due and for civil and criminal enforcement of
310	310	the liability for those taxes.
311	311	SECTION 11. Except as otherwise provided by this Act, this
312	312	Act takes effect January 1, 2018.
313	313	* * * * *