85R23373 CJC-D
By: Morrison H.B. No. 1494
A BILL TO BE ENTITLED
AN ACT
relating to the use of municipal hotel occupancy tax revenue by
certain municipalities.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subchapter B, Chapter 351, Tax Code, is amended
by adding Section 351.1075 to read as follows:
Sec. 351.1075. ALLOCATION OF REVENUE FOR THE ARTS BY
CERTAIN MUNICIPALITIES. (a) This section applies only to a
municipality:
(1) a portion of which is designated as a cultural arts
district; and
(2) that is the county seat of a county:
(A) described by Section 352.002(a)(6);
(B) with a population of less than 50,000; and
(C) that includes a state park and a national
wildlife refuge.
(b) Notwithstanding any other provision of this chapter and
subject to Subsection (c)(1), a municipality to which this section
applies may use not more than 30 percent of the revenue derived from
the municipal hotel occupancy tax for the purposes provided by
Section 351.101(a)(4).
(c) A municipality to which this section applies that spends
more than 15 percent of the hotel occupancy tax revenue collected by
the municipality in a fiscal year for the purposes provided by
Section 351.101(a)(4):
(1) may not in that fiscal year reduce the percentage
of hotel occupancy tax revenue that the municipality spends for the
purposes described by Section 351.101(a)(3) to a percentage that is
less than the average percentage of hotel occupancy tax revenue
spent by the municipality for those purposes during the 36-month
period preceding that fiscal year; and
(2) shall determine for that fiscal year:
(A) the increase in the amount of hotel revenue
that is attributable to that expenditure; and
(B) the total amount of hotel occupancy tax
revenue spent by the municipality for the purposes provided by
Section 351.101(a)(4).
(d) If the amount of money determined under Subsection
(c)(2)(A) is less than the amount of money determined under
Subsection (c)(2)(B), the municipality shall reimburse the
municipality's hotel occupancy tax revenue fund from the
municipality's general fund an amount equal to 50 percent of the
difference between those determined amounts.
SECTION 2. 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, 2017.