86R10018 CJC-D
By: Powell S.B. No. 1472
A BILL TO BE ENTITLED
AN ACT
relating to the collection of state, municipal, and county hotel
occupancy taxes by a short-term rental marketplace.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subchapter B, Chapter 156, Tax Code, is amended
by adding Section 156.054 to read as follows:
Sec. 156.054. TAX COLLECTION BY SHORT-TERM RENTAL
MARKETPLACE. (a) For purposes of this section:
(1) "Booking charge" means the charge imposed on a
person by a host for the purpose of renting a short-term rental in
this state and includes any fees charged by the host, regardless of
whether separately itemized. The booking charge is considered the
price paid for a room or space in a hotel for purposes of the
imposition of a hotel occupancy tax.
(2) "Host" means a person who owns a short-term rental
and offers the short-term rental for rent through a short-term
rental marketplace or, if applicable, that person's authorized
agent who offers the short-term rental for rent through a
short-term rental marketplace.
(3) "Short-term rental" has the meaning assigned by
Section 156.001.
(4) "Short-term rental marketplace" means a
marketplace, Internet website, mobile application, or other
platform:
(A) through which a host offers a short-term
rental for rent; and
(B) that collects the booking charge for the
rental of the short-term rental.
(b) Notwithstanding Section 156.053 or any other law:
(1) a short-term rental marketplace:
(A) shall collect the appropriate amount of the
tax imposed under this chapter on each booking charge with respect
to a short-term rental located in this state;
(B) shall report and remit all taxes collected by
the short-term rental marketplace under Paragraph (A) in the manner
required:
(i) of a person owning, operating,
managing, or controlling a hotel under this chapter; or
(ii) if applicable, by an agreement under
Subsection (c); and
(C) is considered to be the person owning,
operating, managing, or controlling the short-term rental for
purposes of the collection and enforcement of the tax imposed under
this chapter; and
(2) the host may not collect and is not liable for a
tax imposed by this chapter on a booking charge for a rental made
through the short-term rental marketplace.
(c) A short-term rental marketplace may enter into an
agreement with a third-party vendor to remit to the comptroller the
taxes imposed by this chapter that the short-term rental
marketplace collects. During the period the agreement is in
effect:
(1) the short-term rental marketplace shall report and
remit all taxes collected by the short-term rental marketplace
under Subsection (b) to the third-party vendor on a schedule
determined by the vendor; and
(2) the vendor shall report and remit the taxes
described by Subdivision (1) to the comptroller in the manner a
person owning, operating, managing, or controlling a hotel is
required to report and remit taxes under this chapter.
(d) The comptroller may adopt rules to implement and
administer this section.
SECTION 2. Subchapter A, Chapter 351, Tax Code, is amended
by adding Section 351.0043 to read as follows:
Sec. 351.0043. TAX COLLECTION BY SHORT-TERM RENTAL
MARKETPLACE. (a) For purposes of this section:
(1) "Booking charge," "host," and "short-term rental
marketplace" have the meanings assigned by Section 156.054.
(2) "Short-term rental" has the meaning assigned by
Section 156.001.
(b) Notwithstanding Section 351.004 or any other law:
(1) a short-term rental marketplace:
(A) shall collect the appropriate amount of the
tax imposed under this chapter by a municipality in which a
short-term rental is located on each booking charge with respect to
that short-term rental;
(B) shall report and remit all taxes collected by
the short-term rental marketplace under Paragraph (A) in the manner
required:
(i) of a person owning, operating,
managing, or controlling a hotel under this chapter and in
accordance with the ordinance adopted by the municipality imposing
the tax; or
(ii) if applicable, by an agreement under
this section; and
(C) is considered to be the person owning,
operating, managing, or controlling the short-term rental for
purposes of the collection and enforcement of the tax imposed under
this chapter; and
(2) the host may not collect and is not liable for a
tax imposed by this chapter on a booking charge for a rental made
through the short-term rental marketplace.
(c) A short-term rental marketplace may:
(1) enter into an agreement with the comptroller to
collect and remit to the comptroller the taxes imposed by a
municipality under this chapter on each booking charge for a rental
made through the short-term rental marketplace; or
(2) enter into an agreement with a third-party vendor
to remit to the municipality the taxes described by Subdivision (1)
that the short-term rental marketplace collects.
(d) To be effective, an agreement described by Subsection
(c)(2) must be approved by the governing body of the municipality.
During the period an agreement described by Subsection (c) is in
effect, the short-term rental marketplace shall report and remit
all taxes collected by the short-term rental marketplace under
Subsection (b) to:
(1) the comptroller on a schedule determined by the
comptroller, if the agreement in effect is with the comptroller; or
(2) the third-party vendor on a schedule determined by
the vendor, if the agreement in effect is with a vendor.
(e) The comptroller or third-party vendor, as applicable,
shall promulgate a form a short-term rental marketplace must use to
report the taxes collected by the short-term rental marketplace
under this section if an agreement under Subsection (c) is in
effect. The form must include the following information:
(1) the total receipts from the rental during the
reporting period of all short-term rentals located in any
municipality that has approved an agreement under this section and
offered for rent through the short-term rental marketplace,
categorized by municipality in which those short-term rentals are
located;
(2) the total amount of booking charges from the
rental during the reporting period of all short-term rentals
located in any municipality that has approved an agreement under
this section and offered for rent through the short-term rental
marketplace, categorized by municipality in which those short-term
rentals are located;
(3) the rate of the tax imposed under this chapter in
each municipality identified under Subdivision (2); and
(4) the total receipts and the total amount of booking
charges from the rental during the reporting period of all
short-term rentals located in a project financing zone as defined
by Section 351.1015 and offered for rent through the short-term
rental marketplace, categorized by project financing zone.
(f) The form described by Subsection (e) may not require the
identification of a specific guest or the host of a short-term
rental.
(g) If the short-term rental marketplace collects and
remits to the comptroller the taxes imposed by the municipality
under this chapter in accordance with an agreement under Subsection
(c)(1), the comptroller shall:
(1) deposit the taxes remitted to the comptroller
under this section in trust in the separate suspense account of the
municipality in which short-term rentals with respect to which the
taxes were collected are located; and
(2) send to the municipal treasurer or to the person
who performs the office of the municipal treasurer payable to the
municipality the municipality's share of the taxes remitted to the
comptroller under this chapter at least 12 times during each state
fiscal year.
(h) A suspense account described by Subsection (g)(1) is
outside the treasury and the comptroller may make a payment from the
account without the necessity of an appropriation.
(i) Before sending any money to a municipality under
Subsection (g) and subject to the limitation provided by this
subsection, the comptroller shall deduct and deposit to the credit
of the general revenue fund an amount equal to one percent of the
amount of the taxes collected from rentals of short-term rentals
located in the municipality under this section during the period
for which a distribution is made as the state's charge for services
provided by the state under this section. The comptroller may not
deduct from the distributions to a municipality more than $50,000
in each state fiscal year under this subsection.
(j) If the short-term rental marketplace enters into an
agreement with a third-party vendor under Subsection (c)(2), the
vendor shall report and remit to a municipality that approved the
agreement all taxes imposed by the municipality under this chapter
and collected by the short-term rental marketplace on rentals of
short-term rentals located in that municipality at the times and in
the manner provided by the agreement.
(k) Notwithstanding any other law, this section applies to
the collection, remittance, and distribution of taxes imposed by a
political subdivision that is authorized to impose a hotel
occupancy tax under a provision of the Special District Local Laws
Code or civil statutes in the same manner the section applies to a
municipality authorized to impose a hotel occupancy tax under this
chapter.
(l) The comptroller may adopt rules to implement and
administer this section.
SECTION 3. Subchapter A, Chapter 352, Tax Code, is amended
by adding Section 352.0042 to read as follows:
Sec. 352.0042. TAX COLLECTION BY SHORT-TERM RENTAL
MARKETPLACE. (a) For purposes of this section:
(1) "Booking charge," "host," and "short-term rental
marketplace" have the meanings assigned by Section 156.054.
(2) "Short-term rental" has the meaning assigned by
Section 156.001.
(b) Notwithstanding Section 352.004 or any other law:
(1) a short-term rental marketplace:
(A) shall collect the appropriate amount of the
tax imposed under this chapter by a county in which a short-term
rental is located on each booking charge with respect to that
short-term rental;
(B) shall report and remit all taxes collected by
the short-term rental marketplace under Paragraph (A) in the manner
required:
(i) of a person owning, operating,
managing, or controlling a hotel under this chapter and in
accordance with the order adopted by the county imposing the tax; or
(ii) if applicable, by an agreement under
this section; and
(C) is considered to be the person owning,
operating, managing, or controlling the short-term rental for
purposes of the collection and enforcement of the tax imposed under
this chapter; and
(2) the host may not collect and is not liable for a
tax imposed by this chapter on a booking charge for a rental made
through the short-term rental marketplace.
(c) A short-term rental marketplace may:
(1) enter into an agreement with the comptroller to
collect and remit to the comptroller the taxes imposed by a county
under this chapter on each booking charge for a rental made through
the short-term rental marketplace; or
(2) enter into an agreement with a third-party vendor
to remit to the county the taxes described by Subdivision (1) that
the short-term rental marketplace collects.
(d) To be effective, an agreement described by Subsection
(c)(2) must be approved by the commissioners court of the county.
During the period an agreement described by Subsection (c) is in
effect, the short-term rental marketplace shall report and remit
all taxes collected by the short-term rental marketplace under
Subsection (b) to:
(1) the comptroller on a schedule determined by the
comptroller, if the agreement in effect is with the comptroller; or
(2) the third-party vendor on a schedule determined by
the vendor, if the agreement in effect is with a vendor.
(e) The comptroller or third-party vendor, as applicable,
shall promulgate a form a short-term rental marketplace must use to
report the taxes collected by the short-term rental marketplace
under this section if an agreement under Subsection (c) is in
effect. The form must include the following information:
(1) the total receipts from the rental during the
reporting period of all short-term rentals located in any county
that has approved an agreement under this section and offered for
rent through the short-term rental marketplace, categorized by
county in which those short-term rentals are located;
(2) the total amount of booking charges from the
rental during the reporting period of all short-term rentals
located in any county that has approved an agreement under this
section and offered for rent through the short-term rental
marketplace, categorized by county in which those short-term
rentals are located; and
(3) the rate of the tax imposed under this chapter in
each county identified under Subdivision (2).
(f) The form described by Subsection (e) may not require the
identification of a specific guest or the host of a short-term
rental.
(g) If the short-term rental marketplace collects and
remits to the comptroller the taxes imposed by the county under this
chapter in accordance with an agreement under Subsection (c)(1),
the comptroller shall:
(1) deposit the taxes remitted to the comptroller
under this section in trust in the separate suspense account of the
county in which short-term rentals with respect to which the taxes
were collected are located; and
(2) send to the county treasurer payable to the county
the county's share of the taxes remitted to the comptroller under
this chapter at least 12 times during each state fiscal year.
(h) A suspense account described by Subsection (g)(1) is
outside the treasury and the comptroller may make a payment from the
account without the necessity of an appropriation.
(i) Before sending any money to a county under Subsection
(g) and subject to the limitation provided by this subsection, the
comptroller shall deduct and deposit to the credit of the general
revenue fund an amount equal to one percent of the amount of the
taxes collected from rentals of short-term rentals located in the
county under this section during the period for which a
distribution is made as the state's charge for services provided by
the state under this section. The comptroller may not deduct from
the distributions to a county more than $50,000 in each state fiscal
year under this subsection.
(j) If the short-term rental marketplace enters into an
agreement with a third-party vendor under Subsection (c)(2), the
vendor shall report and remit to a county that approved the
agreement all taxes imposed by the county under this chapter and
collected by the short-term rental marketplace on rentals of
short-term rentals located in that county at the times and in the
manner provided by the agreement.
(k) Notwithstanding any other law, this section applies to
the collection, remittance, and distribution of taxes imposed by a
political subdivision that is authorized to impose a hotel
occupancy tax under a provision of the Special District Local Laws
Code or civil statutes in the same manner the section applies to a
county authorized to impose a hotel occupancy tax under this
chapter.
(l) The comptroller may adopt rules to implement and
administer this section.
SECTION 4. Sections 334.253(a) and (b), Local Government
Code, are amended to read as follows:
(a) Sections 351.002(c), 351.004, 351.0041, 351.0043,
351.005, and 351.006, Tax Code, govern the imposition, computation,
administration, collection, and remittance of a municipal tax
authorized under this subchapter except as inconsistent with this
subchapter.
(b) Sections 352.002(c), 352.004, 352.0041, 352.0042,
352.005, and 352.007, Tax Code, govern the imposition, computation,
administration, collection, and remittance of a county tax
authorized under this subchapter except as inconsistent with this
subchapter.
SECTION 5. This Act takes effect September 1, 2019.