TX
Texas House Bill HB1962

Texas 2021 - 87th Regular

Texas House Bill HB1962 Compare Versions

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11 By: Beckley H.B. No. 1962
22
33
44 A BILL TO BE ENTITLED
55 AN ACT
66 relating to the collection of state, municipal, and county hotel
77 occupancy taxes by a short-term rental marketplace.
88 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
99 SECTION 1. Subchapter B, Chapter 156, Tax Code, is amended
1010 by adding Section 156.054 to read as follows:
1111 Sec. 156.054. TAX COLLECTION BY SHORT-TERM RENTAL
1212 MARKETPLACE. (a) For purposes of this section:
1313 (1) "Booking charge" means the charge imposed on a
1414 person by a host for the purpose of renting a short-term rental in
1515 this state and includes any fees charged by the host, regardless of
1616 whether separately itemized. The booking charge is considered the
1717 price paid for a room or space in a hotel for purposes of the
1818 imposition of a hotel occupancy tax.
1919 (2) "Host" means a person who owns a short-term rental
2020 and offers the short-term rental for rent through a short-term
2121 rental marketplace or, if applicable, that person's authorized
2222 agent who offers the short-term rental for rent through a
2323 short-term rental marketplace.
2424 (3) "Short-term rental" has the meaning assigned by
2525 Section 156.001.
2626 (4) "Short-term rental marketplace" means a
2727 marketplace, Internet website, mobile application, or other
2828 platform:
2929 (A) through which a host offers a short-term
3030 rental for rent; and
3131 (B) that collects the booking charge for the
3232 rental of the short-term rental.
3333 (b) Notwithstanding Section 156.053 or any other law:
3434 (1) a short-term rental marketplace:
3535 (A) shall collect the appropriate amount of the
3636 tax imposed under this chapter on each booking charge with respect
3737 to a short-term rental located in this state;
3838 (B) shall report and remit all taxes collected by
3939 the short-term rental marketplace under Paragraph (A) in the manner
4040 required:
4141 (i) of a person owning, operating,
4242 managing, or controlling a hotel under this chapter; or
4343 (ii) if applicable, by an agreement under
4444 Subsection (c); and
4545 (C) is considered to be the person owning,
4646 operating, managing, or controlling the short-term rental for
4747 purposes of the collection and enforcement of the tax imposed under
4848 this chapter; and
4949 (2) the host may not collect and is not liable for a
5050 tax imposed by this chapter on a booking charge for a rental made
5151 through the short-term rental marketplace.
5252 (c) A short-term rental marketplace may enter into an
5353 agreement with a third-party vendor to remit to the comptroller the
5454 taxes imposed by this chapter that the short-term rental
5555 marketplace collects. During the period the agreement is in effect:
5656 (1) the short-term rental marketplace shall report and
5757 remit all taxes collected by the short-term rental marketplace
5858 under Subsection (b) to the third-party vendor on a schedule
5959 determined by the vendor; and
6060 (2) the vendor shall report and remit the taxes
6161 described by Subdivision (1) to the comptroller in the manner a
6262 person owning, operating, managing, or controlling a hotel is
6363 required to report and remit taxes under this chapter.
6464 (d) The comptroller may adopt rules to implement and
6565 administer this section.
6666 SECTION 2. Subchapter A, Chapter 351, Tax Code, is amended
6767 by adding Section 351.0043 to read as follows:
6868 Sec. 351.0043. TAX COLLECTION BY SHORT-TERM RENTAL
6969 MARKETPLACE. (a) For purposes of this section:
7070 (1) "Booking charge," "host," and "short-term rental
7171 marketplace" have the meanings assigned by Section 156.054.
7272 (2) "Short-term rental" has the meaning assigned by
7373 Section 156.001.
7474 (b) Notwithstanding Section 351.004 or any other law:
7575 (1) a short-term rental marketplace:
7676 (A) shall collect the appropriate amount of the
7777 tax imposed under this chapter by a municipality in which a
7878 short-term rental is located on each booking charge with respect to
7979 that short-term rental;
8080 (B) shall report and remit all taxes collected by
8181 the short-term rental marketplace under Paragraph (A) in the manner
8282 required:
8383 (i) of a person owning, operating,
8484 managing, or controlling a hotel under this chapter and in
8585 accordance with the ordinance adopted by the municipality imposing
8686 the tax; or
8787 (ii) if applicable, by an agreement under
8888 this section; and
8989 (C) is considered to be the person owning,
9090 operating, managing, or controlling the short-term rental for
9191 purposes of the collection and enforcement of the tax imposed under
9292 this chapter; and
9393 (2) the host may not collect and is not liable for a
9494 tax imposed by this chapter on a booking charge for a rental made
9595 through the short-term rental marketplace.
9696 (c) A short-term rental marketplace may:
9797 (1) enter into an agreement with the comptroller to
9898 collect and remit to the comptroller the taxes imposed by a
9999 municipality under this chapter on each booking charge for a rental
100100 made through the short-term rental marketplace; or
101101 (2) enter into an agreement with a third-party vendor
102102 to remit to the municipality the taxes described by Subdivision (1)
103103 that the short-term rental marketplace collects.
104104 (d) To be effective, an agreement described by Subsection
105105 (c)(2) must be approved by the governing body of the municipality.
106106 During the period an agreement described by Subsection (c) is in
107107 effect, the short-term rental marketplace shall report and remit
108108 all taxes collected by the short-term rental marketplace under
109109 Subsection (b) to:
110110 (1) the comptroller on a schedule determined by the
111111 comptroller, if the agreement in effect is with the comptroller; or
112112 (2) the third-party vendor on a schedule determined by
113113 the vendor, if the agreement in effect is with a vendor.
114114 (e) The comptroller or third-party vendor, as applicable,
115115 shall promulgate a form a short-term rental marketplace must use to
116116 report the taxes collected by the short-term rental marketplace
117117 under this section if an agreement under Subsection (c) is in
118118 effect. The form must include the following information:
119119 (1) the total receipts from the rental during the
120120 reporting period of all short-term rentals located in any
121121 municipality that has approved an agreement under this section and
122122 offered for rent through the short-term rental marketplace,
123123 categorized by municipality in which those short-term rentals are
124124 located;
125125 (2) the total amount of booking charges from the
126126 rental during the reporting period of all short-term rentals
127127 located in any municipality that has approved an agreement under
128128 this section and offered for rent through the short-term rental
129129 marketplace, categorized by municipality in which those short-term
130130 rentals are located;
131131 (3) the rate of the tax imposed under this chapter in
132132 each municipality identified under Subdivision (2); and
133133 (4) the total receipts and the total amount of booking
134134 charges from the rental during the reporting period of all
135135 short-term rentals located in a project financing zone as defined
136136 by Section 351.1015 and offered for rent through the short-term
137137 rental marketplace, categorized by project financing zone.
138138 (f) The form described by Subsection (e) may not require the
139139 identification of a specific guest or the host of a short-term
140140 rental.
141141 (g) If the short-term rental marketplace collects and
142142 remits to the comptroller the taxes imposed by the municipality
143143 under this chapter in accordance with an agreement under Subsection
144144 (c)(1), the comptroller shall:
145145 (1) deposit the taxes remitted to the comptroller
146146 under this section in trust in the separate suspense account of the
147147 municipality in which short-term rentals with respect to which the
148148 taxes were collected are located; and
149149 (2) send to the municipal treasurer or to the person
150150 who performs the office of the municipal treasurer payable to the
151151 municipality the municipality's share of the taxes remitted to the
152152 comptroller under this chapter at least 12 times during each state
153153 fiscal year.
154154 (h) A suspense account described by Subsection (g)(1) is
155155 outside the treasury and the comptroller may make a payment from the
156156 account without the necessity of an appropriation.
157157 (i) Before sending any money to a municipality under
158158 Subsection (g) and subject to the limitation provided by this
159159 subsection, the comptroller shall deduct and deposit to the credit
160160 of the general revenue fund an amount equal to one percent of the
161161 amount of the taxes collected from rentals of short-term rentals
162162 located in the municipality under this section during the period
163163 for which a distribution is made as the state's charge for services
164164 provided by the state under this section. The comptroller may not
165165 deduct from the distributions to a municipality more than $50,000
166166 in each state fiscal year under this subsection.
167167 (j) If the short-term rental marketplace enters into an
168168 agreement with a third-party vendor under Subsection (c)(2), the
169169 vendor shall report and remit to a municipality that approved the
170170 agreement all taxes imposed by the municipality under this chapter
171171 and collected by the short-term rental marketplace on rentals of
172172 short-term rentals located in that municipality at the times and in
173173 the manner provided by the agreement.
174174 (k) Notwithstanding any other law, this section applies to
175175 the collection, remittance, and distribution of taxes imposed by a
176176 political subdivision that is authorized to impose a hotel
177177 occupancy tax under a provision of the Special District Local Laws
178178 Code or civil statutes in the same manner the section applies to a
179179 municipality authorized to impose a hotel occupancy tax under this
180180 chapter.
181181 (l) The comptroller may adopt rules to implement and
182182 administer this section.
183183 SECTION 3. Subchapter A, Chapter 352, Tax Code, is amended
184184 by adding Section 352.0042 to read as follows:
185185 Sec. 352.0042. TAX COLLECTION BY SHORT-TERM RENTAL
186186 MARKETPLACE. (a) For purposes of this section:
187187 (1) "Booking charge," "host," and "short-term rental
188188 marketplace" have the meanings assigned by Section 156.054.
189189 (2) "Short-term rental" has the meaning assigned by
190190 Section 156.001.
191191 (b) Notwithstanding Section 352.004 or any other law:
192192 (1) a short-term rental marketplace:
193193 (A) shall collect the appropriate amount of the
194194 tax imposed under this chapter by a county in which a short-term
195195 rental is located on each booking charge with respect to that
196196 short-term rental;
197197 (B) shall report and remit all taxes collected by
198198 the short-term rental marketplace under Paragraph (A) in the manner
199199 required:
200200 (i) of a person owning, operating,
201201 managing, or controlling a hotel under this chapter and in
202202 accordance with the order adopted by the county imposing the tax; or
203203 (ii) if applicable, by an agreement under
204204 this section; and
205205 (C) is considered to be the person owning,
206206 operating, managing, or controlling the short-term rental for
207207 purposes of the collection and enforcement of the tax imposed under
208208 this chapter; and
209209 (2) the host may not collect and is not liable for a
210210 tax imposed by this chapter on a booking charge for a rental made
211211 through the short-term rental marketplace.
212212 (c) A short-term rental marketplace may:
213213 (1) enter into an agreement with the comptroller to
214214 collect and remit to the comptroller the taxes imposed by a county
215215 under this chapter on each booking charge for a rental made through
216216 the short-term rental marketplace; or
217217 (2) enter into an agreement with a third-party vendor
218218 to remit to the county the taxes described by Subdivision (1) that
219219 the short-term rental marketplace collects.
220220 (d) To be effective, an agreement described by Subsection
221221 (c)(2) must be approved by the commissioners court of the county.
222222 During the period an agreement described by Subsection (c) is in
223223 effect, the short-term rental marketplace shall report and remit
224224 all taxes collected by the short-term rental marketplace under
225225 Subsection (b) to:
226226 (1) the comptroller on a schedule determined by the
227227 comptroller, if the agreement in effect is with the comptroller; or
228228 (2) the third-party vendor on a schedule determined by
229229 the vendor, if the agreement in effect is with a vendor.
230230 (e) The comptroller or third-party vendor, as applicable,
231231 shall promulgate a form a short-term rental marketplace must use to
232232 report the taxes collected by the short-term rental marketplace
233233 under this section if an agreement under Subsection (c) is in
234234 effect. The form must include the following information:
235235 (1) the total receipts from the rental during the
236236 reporting period of all short-term rentals located in any county
237237 that has approved an agreement under this section and offered for
238238 rent through the short-term rental marketplace, categorized by
239239 county in which those short-term rentals are located;
240240 (2) the total amount of booking charges from the
241241 rental during the reporting period of all short-term rentals
242242 located in any county that has approved an agreement under this
243243 section and offered for rent through the short-term rental
244244 marketplace, categorized by county in which those short-term
245245 rentals are located; and
246246 (3) the rate of the tax imposed under this chapter in
247247 each county identified under Subdivision (2).
248248 (f) The form described by Subsection (e) may not require the
249249 identification of a specific guest or the host of a short-term
250250 rental.
251251 (g) If the short-term rental marketplace collects and
252252 remits to the comptroller the taxes imposed by the county under this
253253 chapter in accordance with an agreement under Subsection (c)(1),
254254 the comptroller shall:
255255 (1) deposit the taxes remitted to the comptroller
256256 under this section in trust in the separate suspense account of the
257257 county in which short-term rentals with respect to which the taxes
258258 were collected are located; and
259259 (2) send to the county treasurer payable to the county
260260 the county's share of the taxes remitted to the comptroller under
261261 this chapter at least 12 times during each state fiscal year.
262262 (h) A suspense account described by Subsection (g)(1) is
263263 outside the treasury and the comptroller may make a payment from the
264264 account without the necessity of an appropriation.
265265 (i) Before sending any money to a county under Subsection
266266 (g) and subject to the limitation provided by this subsection, the
267267 comptroller shall deduct and deposit to the credit of the general
268268 revenue fund an amount equal to one percent of the amount of the
269269 taxes collected from rentals of short-term rentals located in the
270270 county under this section during the period for which a
271271 distribution is made as the state's charge for services provided by
272272 the state under this section. The comptroller may not deduct from
273273 the distributions to a county more than $50,000 in each state fiscal
274274 year under this subsection.
275275 (j) If the short-term rental marketplace enters into an
276276 agreement with a third-party vendor under Subsection (c)(2), the
277277 vendor shall report and remit to a county that approved the
278278 agreement all taxes imposed by the county under this chapter and
279279 collected by the short-term rental marketplace on rentals of
280280 short-term rentals located in that county at the times and in the
281281 manner provided by the agreement.
282282 (k) Notwithstanding any other law, this section applies to
283283 the collection, remittance, and distribution of taxes imposed by a
284284 political subdivision that is authorized to impose a hotel
285285 occupancy tax under a provision of the Special District Local Laws
286286 Code or civil statutes in the same manner the section applies to a
287287 county authorized to impose a hotel occupancy tax under this
288288 chapter.
289289 (l) The comptroller may adopt rules to implement and
290290 administer this section.
291291 SECTION 4. Sections 334.253(a) and (b), Local Government
292292 Code, are amended to read as follows:
293293 (a) Sections 351.002(c), 351.004, 351.0041, 351.0043,
294294 351.005, and 351.006, Tax Code, govern the imposition, computation,
295295 administration, collection, and remittance of a municipal tax
296296 authorized under this subchapter except as inconsistent with this
297297 subchapter.
298298 (b) Sections 352.002(c), 352.004, 352.0041, 352.0042,
299299 352.005, and 352.007, Tax Code, govern the imposition, computation,
300300 administration, collection, and remittance of a county tax
301301 authorized under this subchapter except as inconsistent with this
302302 subchapter.
303303 SECTION 5. This Act takes effect September 1, 2021.