85R3111 BEF-D
By: Nevárez H.B. No. 902
A BILL TO BE ENTITLED
AN ACT
relating to the use by certain municipalities of hotel occupancy
tax revenue to improve or expand certain airports.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subchapter B, Chapter 351, Tax Code, is amended
by adding Section 351.1036 to read as follows:
Sec. 351.1036. ALLOCATION OF REVENUE FOR AIRPORTS BY
CERTAIN MUNICIPALITIES IN BORDER COUNTIES. (a) This section applies
only to a municipality that is the county seat of a county that
borders:
(1) the United Mexican States;
(2) a county described by Section 352.002(a)(7); and
(3) a county described by Section 352.002(a)(14).
(b) Notwithstanding any other provision of this chapter, a
municipality to which this section applies may use municipal hotel
occupancy tax revenue to improve or expand an airport:
(1) owned by the county in which the municipality is
located;
(2) located more than 150 miles from the nearest
airport in this state with regularly scheduled commercial airline
flights; and
(3) substantially used for private air service that
transports individuals staying at hotels in or near the
municipality.
(c) A municipality to which this section applies may not use
municipal hotel occupancy tax revenue to improve or expand an
airport described by Subsection (b):
(1) in an amount each fiscal year that exceeds 15
percent of the hotel occupancy tax revenue collected by the
municipality during that year; or
(2) in a total amount under this section that would
exceed the amount of hotel revenue in the municipality that is
likely to be reasonably attributable to guests traveling through
the airport during the 15-year period beginning on the date the
municipality first uses municipal hotel occupancy tax revenue to
improve or expand the airport.
(d) A municipality to which this section applies may not use
municipal hotel occupancy tax revenue to improve or expand an
airport described by Subsection (b) after the 10th anniversary of
the date the municipality first uses that revenue for that purpose.
(e) The governing body of a municipality shall, before using
municipal hotel occupancy tax revenue as provided by this section,
enter into a memorandum of understanding with the county that owns
the airport granting the municipality adequate control to ensure
the municipality receives a sufficient public benefit from the
revenue used.
(f) This section expires December 31, 2032.
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.