By: Zaffirini, et al. S.B. No. 696
(Guillen)
Substitute the following for S.B. No. 696: No.
A BILL TO BE ENTITLED
AN ACT
relating to the imposition, rate, and use of hotel occupancy taxes
in certain counties and municipalities; authorizing certain
counties to impose a hotel occupancy tax; reducing the maximum rate
of the hotel occupancy tax imposed by certain 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 352.002, Tax Code, is amended by
amending Subsection (d) and adding Subsection (bb) to read as
follows:
(d) The tax imposed by a county authorized by Subsection
(a)(6) [(a)(4), (6)], (8), (9), (10), (11), (14), (15), (17), (19),
(20), (21), (23), or (29) to impose the tax does not apply to a hotel
located in a municipality that imposes a tax under Chapter 351
applicable to the hotel. This subsection does not apply to:
(1) a county authorized by Subsection (a)(6) to impose
the tax that:
(A) has a population of less than 40,000 and
adjoins the most populous county in this state; or
(B) has a population of more than 200,000 and
borders the Neches River; or
(2) a county authorized by Subsection (a)(9) to impose
the tax that has a population of more than 9,000.
(bb) The commissioners court of a county with a population
of less than 60,000 in which an annual strawberry festival is held
in a location that is not the county seat of the county may impose a
tax as provided by Subsection (a).
SECTION 3. Section 352.003, Tax Code, is amended by adding
Subsections (y) and (z) to read as follows:
(y) The tax rate in a county authorized to impose the tax
under Section 352.002(a)(4) may not exceed two percent of the price
paid for a room in a hotel.
(z) The tax rate in a county authorized to impose the tax
under Section 352.002(bb) may not exceed two percent of the price
paid for a room in a hotel.
SECTION 4. 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 5. Subchapter B, Chapter 352, Tax Code, is amended
by adding Sections 352.112 and 352.114 to read as follows:
Sec. 352.112. USE OF REVENUE: CERTAIN COUNTIES HOLDING AN
ANNUAL STRAWBERRY FESTIVAL. The revenue from a tax imposed under
this chapter by a county authorized to impose the tax under Section
352.002(bb) may be used only for the construction, enlarging,
equipping, improvement, maintenance, repairing, and operation of a
civic center with an arena used for rodeos, livestock shows, and
agricultural expositions to substantially enhance hotel activity
and encourage tourism.
Sec. 352.114. USE OF REVENUE: CERTAIN COUNTIES CONTAINING
AN INDIAN RESERVATION. (a) In addition to the purposes authorized
by this chapter, the revenue from a tax imposed under this chapter
by a county authorized to impose the tax under Section
352.002(a)(4) may be used to make repairs and improvements to the
county airport or to provide reimbursement for repairs and
improvements to the airport.
(b) A county to which this section applies may not use
revenue from a tax imposed under this chapter for a purpose
described by Subsection (a) in a total amount that would exceed the
amount of hotel revenue in the county that is likely to be
reasonably attributable to guests traveling through the airport
during the 15-year period beginning on the date the county first
uses the tax revenue for that purpose.
(c) A county to which this section applies may not use
revenue from a tax imposed under this chapter for a purpose
described by Subsection (a) after the 10th anniversary of the date
the county first uses the revenue for that purpose.
SECTION 6. Section 351.1035, Tax Code, is repealed.
SECTION 7. This Act takes effect September 1, 2021.