| 5 | 3 | | |
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| 6 | 4 | | |
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| 7 | 5 | | A BILL TO BE ENTITLED |
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| 8 | 6 | | AN ACT |
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| 9 | 7 | | relating to the use by certain municipalities of hotel occupancy |
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| 10 | 8 | | tax revenue to improve or expand certain airports. |
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| 11 | 9 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 12 | 10 | | SECTION 1. Subchapter B, Chapter 351, Tax Code, is amended |
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| 13 | 11 | | by adding Section 351.1036 to read as follows: |
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| 14 | 12 | | Sec. 351.1036. ALLOCATION OF REVENUE FOR AIRPORTS BY |
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| 15 | 13 | | CERTAIN MUNICIPALITIES IN BORDER COUNTIES. (a) This section |
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| 16 | 14 | | applies only to a municipality that is the county seat of a county |
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| 17 | 15 | | that borders: |
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| 18 | 16 | | (1) the United Mexican States; |
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| 19 | 17 | | (2) a county described by Section 352.002(a)(7); and |
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| 20 | 18 | | (3) a county described by Section 352.002(a)(14). |
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| 21 | 19 | | (b) Notwithstanding any other provision of this chapter, a |
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| 22 | 20 | | municipality to which this section applies may use municipal hotel |
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| 23 | 21 | | occupancy tax revenue to improve or expand an airport: |
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| 24 | 22 | | (1) owned by the county in which the municipality is |
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| 25 | 23 | | located; |
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| 26 | 24 | | (2) located more than 150 miles from the nearest |
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| 27 | 25 | | airport in this state with regularly scheduled commercial airline |
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| 28 | 26 | | flights; and |
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| 29 | 27 | | (3) substantially used for private air service that |
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| 30 | 28 | | transports individuals staying at hotels in or near the |
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| 31 | 29 | | municipality. |
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| 32 | 30 | | (c) A municipality to which this section applies may not use |
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| 33 | 31 | | municipal hotel occupancy tax revenue to improve or expand an |
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| 34 | 32 | | airport described by Subsection (b): |
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| 35 | 33 | | (1) in an amount each fiscal year that exceeds 15 |
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| 36 | 34 | | percent of the hotel occupancy tax revenue collected by the |
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| 37 | 35 | | municipality during that year; or |
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| 38 | 36 | | (2) in a total amount under this section that would |
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| 39 | 37 | | exceed the amount of hotel revenue in the municipality that is |
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| 40 | 38 | | likely to be reasonably attributable to guests traveling through |
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| 41 | 39 | | the airport during the 15-year period beginning on the date the |
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| 42 | 40 | | municipality first uses municipal hotel occupancy tax revenue to |
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| 43 | 41 | | improve or expand the airport. |
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| 44 | 42 | | (d) A municipality to which this section applies may not use |
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| 45 | 43 | | municipal hotel occupancy tax revenue to improve or expand an |
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| 46 | 44 | | airport described by Subsection (b) after the 10th anniversary of |
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| 47 | 45 | | the date the municipality first uses that revenue for that purpose. |
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| 48 | 46 | | (e) The governing body of a municipality shall retain |
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| 49 | 47 | | sufficient control over revenue described by this section to ensure |
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| 50 | 48 | | the revenue is used to benefit the municipality by improving or |
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| 51 | 49 | | expanding an airport described by Subsection (b). |
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| 52 | 50 | | (f) This section expires December 31, 2032. |
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| 53 | 51 | | SECTION 2. This Act takes effect immediately if it receives |
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| 54 | 52 | | a vote of two-thirds of all the members elected to each house, as |
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| 55 | 53 | | provided by Section 39, Article III, Texas Constitution. If this |
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| 56 | 54 | | Act does not receive the vote necessary for immediate effect, this |
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| 57 | 55 | | Act takes effect September 1, 2017. |
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