87R18787 SRA-F
By: Morales of Maverick, Bucy, Darby, H.B. No. 4305
Landgraf, González of El Paso
A BILL TO BE ENTITLED
AN ACT
relating to the use of hotel occupancy tax revenue by certain
municipalities and counties.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 351.10692, Tax Code, is amended by
amending Subsections (a) and (c) and adding Subsection (e) to read
as follows:
(a) This section applies only to:
(1) a municipality with a population of less than
2,000 located in a county that:
(A) [(1)] is adjacent to the county in which the
State Capitol is located; and
(B) [(2)] has a population of:
(i) [(A)] not more than 25,000; or
(ii) [(B)] at least 100,000 but not more
than 200,000;
(2) a municipality located in a county with a total
area of more than 6,000 square miles; and
(3) a municipality located in a county with a total
area of more than 3,850 square miles but less than 4,000 square
miles.
(c) A municipality that uses revenue from the municipal
hotel occupancy tax for a purpose described by Subsection (b):
(1) shall make a good-faith estimate based on
reasonable documentation of [determine] the annual amount of area
hotel revenue attributable to dark skies related events and
activities [for five years after the date the municipality first
uses hotel occupancy tax revenue for a purpose described by
Subsection (b)]; and
(2) may not spend municipal hotel occupancy tax
revenue for the purposes described by Subsection (b) in an annual [a
total] amount that exceeds the amount determined under Subdivision
(1).
(e) A municipality that uses municipal hotel occupancy tax
revenue under this section may not reduce the percentage of revenue
from that tax allocated for a purpose described by Section
351.101(a)(3) to a percentage that is less than the average
percentage of the revenue from that tax allocated by the
municipality for the purpose described by Section 351.101(a)(3)
during the 36-month period preceding the date the municipality
begins using revenue for a purpose described by this section.
SECTION 2. Section 352.102, Tax Code, is amended by
amending Subsection (c) and adding Subsection (d) to read as
follows:
(c) A county that borders the Republic of Mexico and that is
further described by Section 352.002(a)(14):
(1) shall use at least one-third of the revenue
collected each fiscal year from the tax imposed under this chapter
for the purposes authorized by this chapter in unincorporated areas
of the county; and
(2) may use revenue from the tax imposed under this
chapter in the same manner that a municipality to which Section
351.10692 applies may use revenue from the municipal hotel
occupancy tax under that section.
(d) A county that borders the United Mexican States and that
is further described by Section 352.002(a)(7) may use revenue from
the tax imposed under this chapter in the same manner that a
municipality to which Section 351.10692 applies may use revenue
from the municipal hotel occupancy tax under that section.
SECTION 3. Section 351.1035, Tax Code, is repealed.
SECTION 4. This Act takes effect immediately if it receives
a vote of two-thirds of all the members elected to each house, as
provided by Section 39, Article III, Texas Constitution. If this
Act does not receive the vote necessary for immediate effect, this
Act takes effect September 1, 2021.