86R6448 SMT-F
By: Button H.B. No. 1197
A BILL TO BE ENTITLED
AN ACT
relating to the allocation of hotel occupancy tax revenue collected
by certain municipalities.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 351.103, Tax Code, is amended by
amending Subsection (b) and adding Subsection (b-1) to read as
follows:
(b) Subsection (a) does not apply to:
(1) a municipality in a fiscal year of the
municipality if the total amount of hotel occupancy tax collected
by the municipality in the most recent calendar year that ends at
least 90 days before the date the fiscal year begins exceeds $2
million; or
(2) a municipality that has a population of at least
200,000 and shares a border with:
(A) a municipality described by Section
351.102(e)(7); and
(B) Lake Ray Hubbard.
(b-1) A municipality excepted from the application of
Subsection (a) by Subsection (b) [this subsection] shall allocate
hotel occupancy tax revenue by ordinance, consistent with the other
limitations of this section. The portion of the tax revenue
allocated by a municipality with a population of more than 1.6
million for the purposes provided by Section 351.101(a)(3) may not
be less than 23 percent, except that the allocation is subject to
and may not impair the authority of the municipality to:
(1) pledge all or any portion of that tax revenue to
the payment of bonds as provided by Section 351.102(a) or bonds
issued to refund bonds secured by that pledge; or
(2) spend all or any portion of that tax revenue for
the payment of operation and maintenance expenses of convention
center facilities.
SECTION 2. The change in law made by this Act applies only
to the allocation of hotel occupancy tax revenue by a municipality
for a fiscal year that begins on or after the effective date of this
Act.
SECTION 3. This Act takes effect September 1, 2019.