TX
Texas House Bill HB3779

Texas 2019 - 86th Regular

Texas House Bill HB3779 Compare Versions

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11 86R10018 CJC-D
22 By: Button H.B. No. 3779
33
44
55 A BILL TO BE ENTITLED
66 AN ACT
77 relating to the collection of state, municipal, and county hotel
88 occupancy taxes by a short-term rental marketplace.
99 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1010 SECTION 1. Subchapter B, Chapter 156, Tax Code, is amended
1111 by adding Section 156.054 to read as follows:
1212 Sec. 156.054. TAX COLLECTION BY SHORT-TERM RENTAL
1313 MARKETPLACE. (a) For purposes of this section:
1414 (1) "Booking charge" means the charge imposed on a
1515 person by a host for the purpose of renting a short-term rental in
1616 this state and includes any fees charged by the host, regardless of
1717 whether separately itemized. The booking charge is considered the
1818 price paid for a room or space in a hotel for purposes of the
1919 imposition of a hotel occupancy tax.
2020 (2) "Host" means a person who owns a short-term rental
2121 and offers the short-term rental for rent through a short-term
2222 rental marketplace or, if applicable, that person's authorized
2323 agent who offers the short-term rental for rent through a
2424 short-term rental marketplace.
2525 (3) "Short-term rental" has the meaning assigned by
2626 Section 156.001.
2727 (4) "Short-term rental marketplace" means a
2828 marketplace, Internet website, mobile application, or other
2929 platform:
3030 (A) through which a host offers a short-term
3131 rental for rent; and
3232 (B) that collects the booking charge for the
3333 rental of the short-term rental.
3434 (b) Notwithstanding Section 156.053 or any other law:
3535 (1) a short-term rental marketplace:
3636 (A) shall collect the appropriate amount of the
3737 tax imposed under this chapter on each booking charge with respect
3838 to a short-term rental located in this state;
3939 (B) shall report and remit all taxes collected by
4040 the short-term rental marketplace under Paragraph (A) in the manner
4141 required:
4242 (i) of a person owning, operating,
4343 managing, or controlling a hotel under this chapter; or
4444 (ii) if applicable, by an agreement under
4545 Subsection (c); and
4646 (C) is considered to be the person owning,
4747 operating, managing, or controlling the short-term rental for
4848 purposes of the collection and enforcement of the tax imposed under
4949 this chapter; and
5050 (2) the host may not collect and is not liable for a
5151 tax imposed by this chapter on a booking charge for a rental made
5252 through the short-term rental marketplace.
5353 (c) A short-term rental marketplace may enter into an
5454 agreement with a third-party vendor to remit to the comptroller the
5555 taxes imposed by this chapter that the short-term rental
5656 marketplace collects. During the period the agreement is in
5757 effect:
5858 (1) the short-term rental marketplace shall report and
5959 remit all taxes collected by the short-term rental marketplace
6060 under Subsection (b) to the third-party vendor on a schedule
6161 determined by the vendor; and
6262 (2) the vendor shall report and remit the taxes
6363 described by Subdivision (1) to the comptroller in the manner a
6464 person owning, operating, managing, or controlling a hotel is
6565 required to report and remit taxes under this chapter.
6666 (d) The comptroller may adopt rules to implement and
6767 administer this section.
6868 SECTION 2. Subchapter A, Chapter 351, Tax Code, is amended
6969 by adding Section 351.0043 to read as follows:
7070 Sec. 351.0043. TAX COLLECTION BY SHORT-TERM RENTAL
7171 MARKETPLACE. (a) For purposes of this section:
7272 (1) "Booking charge," "host," and "short-term rental
7373 marketplace" have the meanings assigned by Section 156.054.
7474 (2) "Short-term rental" has the meaning assigned by
7575 Section 156.001.
7676 (b) Notwithstanding Section 351.004 or any other law:
7777 (1) a short-term rental marketplace:
7878 (A) shall collect the appropriate amount of the
7979 tax imposed under this chapter by a municipality in which a
8080 short-term rental is located on each booking charge with respect to
8181 that short-term rental;
8282 (B) shall report and remit all taxes collected by
8383 the short-term rental marketplace under Paragraph (A) in the manner
8484 required:
8585 (i) of a person owning, operating,
8686 managing, or controlling a hotel under this chapter and in
8787 accordance with the ordinance adopted by the municipality imposing
8888 the tax; or
8989 (ii) if applicable, by an agreement under
9090 this section; and
9191 (C) is considered to be the person owning,
9292 operating, managing, or controlling the short-term rental for
9393 purposes of the collection and enforcement of the tax imposed under
9494 this chapter; and
9595 (2) the host may not collect and is not liable for a
9696 tax imposed by this chapter on a booking charge for a rental made
9797 through the short-term rental marketplace.
9898 (c) A short-term rental marketplace may:
9999 (1) enter into an agreement with the comptroller to
100100 collect and remit to the comptroller the taxes imposed by a
101101 municipality under this chapter on each booking charge for a rental
102102 made through the short-term rental marketplace; or
103103 (2) enter into an agreement with a third-party vendor
104104 to remit to the municipality the taxes described by Subdivision (1)
105105 that the short-term rental marketplace collects.
106106 (d) To be effective, an agreement described by Subsection
107107 (c)(2) must be approved by the governing body of the municipality.
108108 During the period an agreement described by Subsection (c) is in
109109 effect, the short-term rental marketplace shall report and remit
110110 all taxes collected by the short-term rental marketplace under
111111 Subsection (b) to:
112112 (1) the comptroller on a schedule determined by the
113113 comptroller, if the agreement in effect is with the comptroller; or
114114 (2) the third-party vendor on a schedule determined by
115115 the vendor, if the agreement in effect is with a vendor.
116116 (e) The comptroller or third-party vendor, as applicable,
117117 shall promulgate a form a short-term rental marketplace must use to
118118 report the taxes collected by the short-term rental marketplace
119119 under this section if an agreement under Subsection (c) is in
120120 effect. The form must include the following information:
121121 (1) the total receipts from the rental during the
122122 reporting period of all short-term rentals located in any
123123 municipality that has approved an agreement under this section and
124124 offered for rent through the short-term rental marketplace,
125125 categorized by municipality in which those short-term rentals are
126126 located;
127127 (2) the total amount of booking charges from the
128128 rental during the reporting period of all short-term rentals
129129 located in any municipality that has approved an agreement under
130130 this section and offered for rent through the short-term rental
131131 marketplace, categorized by municipality in which those short-term
132132 rentals are located;
133133 (3) the rate of the tax imposed under this chapter in
134134 each municipality identified under Subdivision (2); and
135135 (4) the total receipts and the total amount of booking
136136 charges from the rental during the reporting period of all
137137 short-term rentals located in a project financing zone as defined
138138 by Section 351.1015 and offered for rent through the short-term
139139 rental marketplace, categorized by project financing zone.
140140 (f) The form described by Subsection (e) may not require the
141141 identification of a specific guest or the host of a short-term
142142 rental.
143143 (g) If the short-term rental marketplace collects and
144144 remits to the comptroller the taxes imposed by the municipality
145145 under this chapter in accordance with an agreement under Subsection
146146 (c)(1), the comptroller shall:
147147 (1) deposit the taxes remitted to the comptroller
148148 under this section in trust in the separate suspense account of the
149149 municipality in which short-term rentals with respect to which the
150150 taxes were collected are located; and
151151 (2) send to the municipal treasurer or to the person
152152 who performs the office of the municipal treasurer payable to the
153153 municipality the municipality's share of the taxes remitted to the
154154 comptroller under this chapter at least 12 times during each state
155155 fiscal year.
156156 (h) A suspense account described by Subsection (g)(1) is
157157 outside the treasury and the comptroller may make a payment from the
158158 account without the necessity of an appropriation.
159159 (i) Before sending any money to a municipality under
160160 Subsection (g) and subject to the limitation provided by this
161161 subsection, the comptroller shall deduct and deposit to the credit
162162 of the general revenue fund an amount equal to one percent of the
163163 amount of the taxes collected from rentals of short-term rentals
164164 located in the municipality under this section during the period
165165 for which a distribution is made as the state's charge for services
166166 provided by the state under this section. The comptroller may not
167167 deduct from the distributions to a municipality more than $50,000
168168 in each state fiscal year under this subsection.
169169 (j) If the short-term rental marketplace enters into an
170170 agreement with a third-party vendor under Subsection (c)(2), the
171171 vendor shall report and remit to a municipality that approved the
172172 agreement all taxes imposed by the municipality under this chapter
173173 and collected by the short-term rental marketplace on rentals of
174174 short-term rentals located in that municipality at the times and in
175175 the manner provided by the agreement.
176176 (k) Notwithstanding any other law, this section applies to
177177 the collection, remittance, and distribution of taxes imposed by a
178178 political subdivision that is authorized to impose a hotel
179179 occupancy tax under a provision of the Special District Local Laws
180180 Code or civil statutes in the same manner the section applies to a
181181 municipality authorized to impose a hotel occupancy tax under this
182182 chapter.
183183 (l) The comptroller may adopt rules to implement and
184184 administer this section.
185185 SECTION 3. Subchapter A, Chapter 352, Tax Code, is amended
186186 by adding Section 352.0042 to read as follows:
187187 Sec. 352.0042. TAX COLLECTION BY SHORT-TERM RENTAL
188188 MARKETPLACE. (a) For purposes of this section:
189189 (1) "Booking charge," "host," and "short-term rental
190190 marketplace" have the meanings assigned by Section 156.054.
191191 (2) "Short-term rental" has the meaning assigned by
192192 Section 156.001.
193193 (b) Notwithstanding Section 352.004 or any other law:
194194 (1) a short-term rental marketplace:
195195 (A) shall collect the appropriate amount of the
196196 tax imposed under this chapter by a county in which a short-term
197197 rental is located on each booking charge with respect to that
198198 short-term rental;
199199 (B) shall report and remit all taxes collected by
200200 the short-term rental marketplace under Paragraph (A) in the manner
201201 required:
202202 (i) of a person owning, operating,
203203 managing, or controlling a hotel under this chapter and in
204204 accordance with the order adopted by the county imposing the tax; or
205205 (ii) if applicable, by an agreement under
206206 this section; and
207207 (C) is considered to be the person owning,
208208 operating, managing, or controlling the short-term rental for
209209 purposes of the collection and enforcement of the tax imposed under
210210 this chapter; and
211211 (2) the host may not collect and is not liable for a
212212 tax imposed by this chapter on a booking charge for a rental made
213213 through the short-term rental marketplace.
214214 (c) A short-term rental marketplace may:
215215 (1) enter into an agreement with the comptroller to
216216 collect and remit to the comptroller the taxes imposed by a county
217217 under this chapter on each booking charge for a rental made through
218218 the short-term rental marketplace; or
219219 (2) enter into an agreement with a third-party vendor
220220 to remit to the county the taxes described by Subdivision (1) that
221221 the short-term rental marketplace collects.
222222 (d) To be effective, an agreement described by Subsection
223223 (c)(2) must be approved by the commissioners court of the county.
224224 During the period an agreement described by Subsection (c) is in
225225 effect, the short-term rental marketplace shall report and remit
226226 all taxes collected by the short-term rental marketplace under
227227 Subsection (b) to:
228228 (1) the comptroller on a schedule determined by the
229229 comptroller, if the agreement in effect is with the comptroller; or
230230 (2) the third-party vendor on a schedule determined by
231231 the vendor, if the agreement in effect is with a vendor.
232232 (e) The comptroller or third-party vendor, as applicable,
233233 shall promulgate a form a short-term rental marketplace must use to
234234 report the taxes collected by the short-term rental marketplace
235235 under this section if an agreement under Subsection (c) is in
236236 effect. The form must include the following information:
237237 (1) the total receipts from the rental during the
238238 reporting period of all short-term rentals located in any county
239239 that has approved an agreement under this section and offered for
240240 rent through the short-term rental marketplace, categorized by
241241 county in which those short-term rentals are located;
242242 (2) the total amount of booking charges from the
243243 rental during the reporting period of all short-term rentals
244244 located in any county that has approved an agreement under this
245245 section and offered for rent through the short-term rental
246246 marketplace, categorized by county in which those short-term
247247 rentals are located; and
248248 (3) the rate of the tax imposed under this chapter in
249249 each county identified under Subdivision (2).
250250 (f) The form described by Subsection (e) may not require the
251251 identification of a specific guest or the host of a short-term
252252 rental.
253253 (g) If the short-term rental marketplace collects and
254254 remits to the comptroller the taxes imposed by the county under this
255255 chapter in accordance with an agreement under Subsection (c)(1),
256256 the comptroller shall:
257257 (1) deposit the taxes remitted to the comptroller
258258 under this section in trust in the separate suspense account of the
259259 county in which short-term rentals with respect to which the taxes
260260 were collected are located; and
261261 (2) send to the county treasurer payable to the county
262262 the county's share of the taxes remitted to the comptroller under
263263 this chapter at least 12 times during each state fiscal year.
264264 (h) A suspense account described by Subsection (g)(1) is
265265 outside the treasury and the comptroller may make a payment from the
266266 account without the necessity of an appropriation.
267267 (i) Before sending any money to a county under Subsection
268268 (g) and subject to the limitation provided by this subsection, the
269269 comptroller shall deduct and deposit to the credit of the general
270270 revenue fund an amount equal to one percent of the amount of the
271271 taxes collected from rentals of short-term rentals located in the
272272 county under this section during the period for which a
273273 distribution is made as the state's charge for services provided by
274274 the state under this section. The comptroller may not deduct from
275275 the distributions to a county more than $50,000 in each state fiscal
276276 year under this subsection.
277277 (j) If the short-term rental marketplace enters into an
278278 agreement with a third-party vendor under Subsection (c)(2), the
279279 vendor shall report and remit to a county that approved the
280280 agreement all taxes imposed by the county under this chapter and
281281 collected by the short-term rental marketplace on rentals of
282282 short-term rentals located in that county at the times and in the
283283 manner provided by the agreement.
284284 (k) Notwithstanding any other law, this section applies to
285285 the collection, remittance, and distribution of taxes imposed by a
286286 political subdivision that is authorized to impose a hotel
287287 occupancy tax under a provision of the Special District Local Laws
288288 Code or civil statutes in the same manner the section applies to a
289289 county authorized to impose a hotel occupancy tax under this
290290 chapter.
291291 (l) The comptroller may adopt rules to implement and
292292 administer this section.
293293 SECTION 4. Sections 334.253(a) and (b), Local Government
294294 Code, are amended to read as follows:
295295 (a) Sections 351.002(c), 351.004, 351.0041, 351.0043,
296296 351.005, and 351.006, Tax Code, govern the imposition, computation,
297297 administration, collection, and remittance of a municipal tax
298298 authorized under this subchapter except as inconsistent with this
299299 subchapter.
300300 (b) Sections 352.002(c), 352.004, 352.0041, 352.0042,
301301 352.005, and 352.007, Tax Code, govern the imposition, computation,
302302 administration, collection, and remittance of a county tax
303303 authorized under this subchapter except as inconsistent with this
304304 subchapter.
305305 SECTION 5. This Act takes effect September 1, 2019.