By: Perry S.B. No. 2056
(In the Senate - Filed March 10, 2017; March 28, 2017, read
first time and referred to Committee on Natural Resources &
Economic Development; April 27, 2017, reported adversely, with
favorable Committee Substitute by the following vote: Yeas 8,
Nays 0, 2 present not voting; April 27, 2017, sent to printer.)
Click here to see the committee vote
COMMITTEE SUBSTITUTE FOR S.B. No. 2056 By: Zaffirini
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 351.10711 to read as follows:
Sec. 351.10711. ALLOCATION OF REVENUE FOR MAINTENANCE,
ENHANCEMENT, AND UPGRADE OF SPORTS FACILITIES AND FIELDS BY CERTAIN
MUNICIPALITIES. (a) This section applies only to a municipality
that is the county seat of a county that has a population of more
than 10,000 and contains a portion of Mound Lake.
(b) In addition to other authorized uses, a municipality to
which this section applies may use revenue derived from the tax
imposed under this chapter to promote tourism by maintaining,
enhancing, or upgrading sports facilities or fields, provided that:
(1) the requirements of Section 351.1076 are met if
the municipality uses the revenue to enhance or upgrade a sports
facility or field;
(2) the municipality owns the sports facilities or
fields; and
(3) the sports facilities and fields have been used,
in the preceding calendar year, a combined total of more than 10
times for district, state, regional, or national sports
tournaments.
(c) A municipality that uses revenue derived from the tax
imposed under this chapter as authorized by Subsection (b) may not
reduce the percentage of revenue from the tax imposed under this
chapter and allocated for a purpose described by Section
351.101(a)(3) to a percentage that is less than the average
percentage of that revenue allocated by the municipality for that
purpose during the 36-month period preceding the date the
municipality begins using the revenue as authorized by Subsection
(b).
SECTION 2. Section 351.1076(a), Tax Code, is amended to
read as follows:
(a) A municipality that spends municipal hotel occupancy
tax revenue for the enhancement and upgrading of existing sports
facilities or fields as authorized by Section 351.101(a)(7) or
351.10711:
(1) shall determine the amount of municipal hotel
occupancy tax revenue generated for the municipality by hotel
activity attributable to the sports events and tournaments held on
the enhanced or upgraded facilities or fields for five years after
the date the enhancements and upgrades are completed; and
(2) may not spend hotel occupancy tax revenue for the
enhancement and upgrading of the facilities or fields in a total
amount that exceeds the amount of area hotel revenue attributable
to the enhancements and upgrades.
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, 2017.
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