| 1 | 1 | | 86R6448 SMT-F |
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| 2 | 2 | | By: Button H.B. No. 1197 |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | A BILL TO BE ENTITLED |
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| 6 | 6 | | AN ACT |
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| 7 | 7 | | relating to the allocation of hotel occupancy tax revenue collected |
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| 8 | 8 | | by certain municipalities. |
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| 9 | 9 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 10 | 10 | | SECTION 1. Section 351.103, Tax Code, is amended by |
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| 11 | 11 | | amending Subsection (b) and adding Subsection (b-1) to read as |
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| 12 | 12 | | follows: |
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| 13 | 13 | | (b) Subsection (a) does not apply to: |
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| 14 | 14 | | (1) a municipality in a fiscal year of the |
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| 15 | 15 | | municipality if the total amount of hotel occupancy tax collected |
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| 16 | 16 | | by the municipality in the most recent calendar year that ends at |
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| 17 | 17 | | least 90 days before the date the fiscal year begins exceeds $2 |
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| 18 | 18 | | million; or |
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| 19 | 19 | | (2) a municipality that has a population of at least |
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| 20 | 20 | | 200,000 and shares a border with: |
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| 21 | 21 | | (A) a municipality described by Section |
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| 22 | 22 | | 351.102(e)(7); and |
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| 23 | 23 | | (B) Lake Ray Hubbard. |
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| 24 | 24 | | (b-1) A municipality excepted from the application of |
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| 25 | 25 | | Subsection (a) by Subsection (b) [this subsection] shall allocate |
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| 26 | 26 | | hotel occupancy tax revenue by ordinance, consistent with the other |
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| 27 | 27 | | limitations of this section. The portion of the tax revenue |
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| 28 | 28 | | allocated by a municipality with a population of more than 1.6 |
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| 29 | 29 | | million for the purposes provided by Section 351.101(a)(3) may not |
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| 30 | 30 | | be less than 23 percent, except that the allocation is subject to |
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| 31 | 31 | | and may not impair the authority of the municipality to: |
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| 32 | 32 | | (1) pledge all or any portion of that tax revenue to |
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| 33 | 33 | | the payment of bonds as provided by Section 351.102(a) or bonds |
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| 34 | 34 | | issued to refund bonds secured by that pledge; or |
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| 35 | 35 | | (2) spend all or any portion of that tax revenue for |
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| 36 | 36 | | the payment of operation and maintenance expenses of convention |
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| 37 | 37 | | center facilities. |
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| 38 | 38 | | SECTION 2. The change in law made by this Act applies only |
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| 39 | 39 | | to the allocation of hotel occupancy tax revenue by a municipality |
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| 40 | 40 | | for a fiscal year that begins on or after the effective date of this |
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| 41 | 41 | | Act. |
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| 42 | 42 | | SECTION 3. This Act takes effect September 1, 2019. |
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