86R9602 SMT-F
By: Bohac H.B. No. 3864
A BILL TO BE ENTITLED
AN ACT
relating to the expenditure of municipal hotel occupancy tax
revenue allocated by certain municipalities for certain purposes.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subchapter B, Chapter 351, Tax Code, is amended
by adding Section 351.111 to read as follows:
Sec. 351.111. EXPENDITURE OF ALLOCATED REVENUE: ELIGIBLE
COASTAL MUNICIPALITY AND CERTAIN OTHER MUNICIPALITIES. (a) This
section applies only to:
(1) an eligible coastal municipality; and
(2) a municipality with a population of more than
750,000 and less than one million.
(b) If a municipality allocates a percentage of the hotel
occupancy tax revenue the municipality collects for the purposes
provided by Section 351.101(a)(5) for a site or museum not
primarily visited by tourists, the municipality may not spend any
portion of the allocated hotel occupancy tax revenue for that site
or museum in a fiscal year in an amount that exceeds the amount of
hotel occupancy tax revenue the municipality proposes to spend for
the site or museum for that fiscal year multiplied by the
municipality's good faith estimate of the percentage that the
annual number of tourists visiting the site or museum bears to the
total annual number of visitors to the site or museum.
(c) A municipality shall require a site or museum to report
the annual numbers of tourists visiting the site or museum and total
visitors to the site or museum for the purposes of making the good
faith estimate described by Subsection (b).
(d) To the extent that hotel occupancy tax revenue collected
and allocated for a purpose described by Section 351.101(a)(5) may
not be spent because of the limitation provided by Subsection (b),
the municipality may allocate that revenue in the following fiscal
year in the manner provided by this chapter.
SECTION 2. This Act takes effect September 1, 2019.