| 5 | 2 | | |
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| 6 | 3 | | |
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| 7 | 4 | | A BILL TO BE ENTITLED |
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| 8 | 5 | | AN ACT |
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| 9 | 6 | | relating to the use by certain municipalities of municipal hotel |
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| 10 | 7 | | occupancy tax revenue for the enhancement and maintenance of public |
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| 11 | 8 | | parks. |
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| 12 | 9 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 13 | 10 | | SECTION 1. Subchapter B, Chapter 351, Tax Code, is amended |
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| 14 | 11 | | by adding Section 351.111 to read as follows: |
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| 15 | 12 | | Sec. 351.111. ALLOCATION OF REVENUE FOR PUBLIC PARKS BY |
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| 16 | 13 | | CERTAIN MUNICIPALITIES. (a) This section applies only to: |
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| 17 | | - | (1) a municipality described by Section 351.101(o); |
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| 18 | | - | (2) a municipality described by Section 351.152(29); |
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| 19 | | - | (3) a municipality that is bisected by U.S. Highway |
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| 20 | | - | 290 and is located in a county that: |
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| 21 | | - | (A) is adjacent to the county in which the State |
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| 22 | | - | Capitol is located; and |
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| 23 | | - | (B) has a population of more than 150,000; and |
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| 24 | | - | (4) a municipality with a population of less than |
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| 25 | | - | 3,000 that borders the Pecan Bayou and has a visitors and events |
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| 26 | | - | center. |
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| 14 | + | (1) a municipality with a population of less than |
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| 15 | + | 200,000; and |
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| 16 | + | (2) a municipality with a population of less than |
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| 17 | + | 300,000 that contains a component institution of the Texas Tech |
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| 18 | + | University System. |
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| 27 | 19 | | (b) Notwithstanding any other provision of this chapter and |
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| 28 | 20 | | subject to the requirements of this section, a municipality to |
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| 29 | 21 | | which this section applies may use a portion of the revenue derived |
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| 30 | 22 | | from the tax imposed under this chapter to promote tourism and the |
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| 31 | 23 | | convention and hotel industry by enhancing and maintaining public |
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| 32 | 24 | | parks owned by the municipality. |
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| 33 | 25 | | (c) The amount of municipal hotel occupancy tax revenue a |
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| 34 | 26 | | municipality may use in a fiscal year to enhance and maintain all |
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| 35 | 27 | | public parks may not exceed 10 percent of the amount of revenue the |
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| 36 | 28 | | municipality collected from that tax during the preceding fiscal |
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| 37 | 29 | | year. |
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| 38 | 30 | | (d) The amount of municipal hotel occupancy tax revenue a |
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| 39 | 31 | | municipality may use in a fiscal year to enhance and maintain an |
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| 40 | 32 | | individual public park may not exceed the amount of area hotel |
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| 41 | 33 | | revenue in the preceding fiscal year that was directly attributable |
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| 42 | 34 | | to tourists who attended events held at that park or otherwise |
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| 43 | 35 | | visited that park. Before the municipality uses municipal hotel |
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| 44 | 36 | | occupancy tax revenue to enhance or maintain a park, the |
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| 45 | 37 | | municipality must make a good faith estimate of the annual amount of |
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| 46 | 38 | | area hotel revenue directly attributable to tourists who visited |
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| 47 | 39 | | that park. |
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| 48 | 40 | | (e) A municipality that uses municipal hotel occupancy tax |
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| 49 | 41 | | revenue under this section: |
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| 50 | 42 | | (1) may, notwithstanding the limitation under |
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| 51 | 43 | | Subsection (c), reserve not more than 10 percent of the revenue from |
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| 52 | 44 | | that tax collected in a fiscal year for use under this section |
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| 53 | 45 | | during the succeeding three fiscal years; and |
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| 54 | 46 | | (2) may not reduce the percentage of revenue from that |
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| 55 | 47 | | tax allocated for a purpose described by Section 351.101(a)(3) to a |
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| 56 | 48 | | percentage that is less than the average percentage of the revenue |
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| 57 | 49 | | from that tax allocated by the municipality for the purpose |
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| 58 | 50 | | described by Section 351.101(a)(3) during the 36-month period |
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| 59 | 51 | | preceding the date the municipality begins using revenue for a |
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| 60 | 52 | | purpose described by this section. |
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| 61 | 53 | | SECTION 2. This Act takes effect immediately if it receives |
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| 62 | 54 | | a vote of two-thirds of all the members elected to each house, as |
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| 63 | 55 | | provided by Section 39, Article III, Texas Constitution. If this |
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| 64 | 56 | | Act does not receive the vote necessary for immediate effect, this |
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| 65 | 57 | | Act takes effect September 1, 2021. |
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