86R12177 SMT-D
By: Johnson S.B. No. 1262
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 351.101(a), Tax Code, as amended by
Chapters 53 (S.B. 1365), 267 (H.B. 1896), 324 (S.B. 1488), and 785
(H.B. 2445), Acts of the 85th Legislature, Regular Session, 2017,
is reenacted and amended to read as follows:
(a) Revenue from the municipal hotel occupancy tax may be
used only to promote tourism and the convention and hotel industry,
and that use is limited to the following:
(1) the acquisition of sites for and the construction,
improvement, enlarging, equipping, repairing, operation, and
maintenance of convention center facilities or visitor information
centers, or both;
(2) the furnishing of facilities, personnel, and
materials for the registration of convention delegates or
registrants;
(3) advertising and conducting solicitations and
promotional programs to attract tourists and convention delegates
or registrants to the municipality or its vicinity;
(4) the encouragement, promotion, improvement, and
application of the arts, including instrumental and vocal music,
dance, drama, folk art, creative writing, architecture, design and
allied fields, painting, sculpture, photography, graphic and craft
arts, motion pictures, radio, television, tape and sound recording,
and other arts related to the presentation, performance, execution,
and exhibition of these major art forms;
(5) historical restoration and preservation projects
or activities or advertising and conducting solicitations and
promotional programs to encourage tourists and convention
delegates to visit preserved historic sites or museums:
(A) at or in the immediate vicinity of convention
center facilities or visitor information centers; or
(B) located elsewhere in the municipality or its
vicinity that would be frequented by tourists and convention
delegates;
(6) expenses, including promotion expenses, directly
related to a sporting event in which the majority of participants
are tourists who substantially increase economic activity at hotels
and motels within the municipality or its vicinity if:
(A) the municipality is located in a county with
a population of one million or less; [or]
(B) the municipality has a population of more
than 67,000 and is located in two counties with 90 percent of the
municipality's territory located in a county with a population of
at least 580,000, and the remaining territory located in a county
with a population of at least four million; or
(C) the municipality has a population of more
than 225,000 and is located in three counties, one of which has a
population of more than two million and less than four million;
(7) subject to Section 351.1076, the promotion of
tourism by the enhancement and upgrading of existing sports
facilities or fields if:
(A) the municipality owns the facilities or
fields;
(B) the municipality:
(i) has a population of 80,000 or more and
is located in a county that has a population of 350,000 or less;
(ii) has a population of at least 75,000 but
not more than 95,000 and is located in a county that has a
population of less than 200,000 but more than 160,000;
(iii) has a population of at least 36,000
but not more than 39,000 and is located in a county that has a
population of 100,000 or less that is not adjacent to a county with
a population of more than two million;
(iv) has a population of at least 13,000 but
less than 39,000 and is located in a county that has a population of
at least 200,000;
(v) has a population of at least 70,000 but
less than 90,000 and no part of which is located in a county with a
population greater than 150,000;
(vi) is located in a county that:
(a) is adjacent to the Texas-Mexico
border;
(b) has a population of at least
500,000; and
(c) does not have a municipality with
a population greater than 500,000;
(vii) has a population of at least 25,000
but not more than 26,000 and is located in a county that has a
population of 90,000 or less;
(viii) is located in a county that has a
population of not more than 300,000 and in which a component
university of the University of Houston System is located;
(ix) has a population of at least 40,000 and
the San Marcos River flows through the municipality; [or]
(x) has a population of more than 67,000 and
is located in two counties with 90 percent of the municipality's
territory located in a county with a population of at least 580,000,
and the remaining territory located in a county with a population of
at least four million; or
(xi) contains an intersection of
Interstates 35E and 35W and at least two public universities; and
(C) the sports facilities and fields have been
used, in the preceding calendar year, a combined total of more than
10 times for district, state, regional, or national sports
tournaments;
(8) for a municipality with a population of at least
70,000 but less than 90,000, no part of which is located in a county
with a population greater than 150,000, the construction,
improvement, enlarging, equipping, repairing, operation, and
maintenance of a coliseum or multiuse facility;
(9) signage directing the public to sights and
attractions that are visited frequently by hotel guests in the
municipality;
(10) the construction, improvement, enlarging,
equipping, repairing, operation, and maintenance of a coliseum or
multiuse facility, if the municipality:
(A) has a population of at least 90,000 but less
than 120,000; and
(B) is located in two counties, at least one of
which contains the headwaters of the San Gabriel River; and
(11) for a municipality with a population of more than
175,000 but less than 225,000 that is located in two counties, each
of which has a population of less than 200,000, the construction,
improvement, enlarging, equipping, repairing, operation, and
maintenance of a coliseum or multiuse facility and related
infrastructure or a venue, as defined by Section 334.001(4), Local
Government Code, that is related to the promotion of tourism.
SECTION 2. Section 351.103, Tax Code, is amended by adding
Subsection (b-1) to read as follows:
(b-1) Notwithstanding Subsection (a), at least 30 percent
of the hotel occupancy tax revenue collected by a municipality
described by Section 351.101(a)(6)(C) must be allocated for the
purposes provided by Section 351.101(a)(3).
SECTION 3. 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 4. To the extent of any conflict, this Act controls
over another Act of the 86th Legislature, Regular Session, 2019,
relating to nonsubstantive additions to and corrections in enacted
codes.
SECTION 5. This Act takes effect September 1, 2019.