| 1 | 1 | | 86R9602 SMT-F |
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| 2 | 2 | | By: Bohac H.B. No. 3864 |
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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 expenditure of municipal hotel occupancy tax |
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| 8 | 8 | | revenue allocated by certain municipalities for certain purposes. |
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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. Subchapter B, Chapter 351, Tax Code, is amended |
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| 11 | 11 | | by adding Section 351.111 to read as follows: |
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| 12 | 12 | | Sec. 351.111. EXPENDITURE OF ALLOCATED REVENUE: ELIGIBLE |
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| 13 | 13 | | COASTAL MUNICIPALITY AND CERTAIN OTHER MUNICIPALITIES. (a) This |
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| 14 | 14 | | section applies only to: |
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| 15 | 15 | | (1) an eligible coastal municipality; and |
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| 16 | 16 | | (2) a municipality with a population of more than |
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| 17 | 17 | | 750,000 and less than one million. |
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| 18 | 18 | | (b) If a municipality allocates a percentage of the hotel |
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| 19 | 19 | | occupancy tax revenue the municipality collects for the purposes |
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| 20 | 20 | | provided by Section 351.101(a)(5) for a site or museum not |
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| 21 | 21 | | primarily visited by tourists, the municipality may not spend any |
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| 22 | 22 | | portion of the allocated hotel occupancy tax revenue for that site |
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| 23 | 23 | | or museum in a fiscal year in an amount that exceeds the amount of |
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| 24 | 24 | | hotel occupancy tax revenue the municipality proposes to spend for |
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| 25 | 25 | | the site or museum for that fiscal year multiplied by the |
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| 26 | 26 | | municipality's good faith estimate of the percentage that the |
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| 27 | 27 | | annual number of tourists visiting the site or museum bears to the |
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| 28 | 28 | | total annual number of visitors to the site or museum. |
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| 29 | 29 | | (c) A municipality shall require a site or museum to report |
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| 30 | 30 | | the annual numbers of tourists visiting the site or museum and total |
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| 31 | 31 | | visitors to the site or museum for the purposes of making the good |
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| 32 | 32 | | faith estimate described by Subsection (b). |
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| 33 | 33 | | (d) To the extent that hotel occupancy tax revenue collected |
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| 34 | 34 | | and allocated for a purpose described by Section 351.101(a)(5) may |
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| 35 | 35 | | not be spent because of the limitation provided by Subsection (b), |
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| 36 | 36 | | the municipality may allocate that revenue in the following fiscal |
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| 37 | 37 | | year in the manner provided by this chapter. |
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| 38 | 38 | | SECTION 2. This Act takes effect September 1, 2019. |
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