H.B. No. 1689
AN ACT
relating to the use of county hotel occupancy tax revenue for an
electronic tax administration system and the reimbursement of tax
collection expenses.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 352.005, Tax Code, is amended to read as
follows:
Sec. 352.005. REIMBURSEMENT FOR EXPENSES OF TAX COLLECTION
AND USE OF ELECTRONIC TAX ADMINISTRATION SYSTEM [EXPENSES]. (a) A
county may permit a person who is required to collect and pay over
to the county the tax authorized by this chapter to withhold not
more than one percent of the amount collected and required to be
reported as reimbursement to the person for the cost of [costs in]
collecting the tax.
(b) If a county uses revenue derived from the tax authorized
by this chapter to create, maintain, operate, or administer an
electronic tax administration system as authorized by Section
352.1016, the county shall permit a person who is required to
collect and pay over to the county the tax authorized by this
chapter to withhold not more than one percent of the amount of the
tax collected and required to be reported as reimbursement to the
person for the cost of collecting the tax.
(c) The county may provide that the reimbursement provided
or required by this section be forfeited because of a failure to pay
the tax authorized by this chapter or to file a report related to
that tax as required by the county.
SECTION 2. Subchapter B, Chapter 352, Tax Code, is amended
by adding Section 352.1016 to read as follows:
Sec. 352.1016. ELECTRONIC TAX ADMINISTRATION SYSTEM. (a)
Notwithstanding any other provision of this chapter, a county may
spend each year not more than the lesser of two percent or $75,000
of the revenue derived from the tax authorized by this chapter
during that year for the creation, maintenance, operation, and
administration of an electronic tax administration system to
administer the tax authorized by this chapter. A county may not use
revenue the county is authorized to spend under this section to
conduct an audit.
(b) A county may contract with a third party to assist in the
creation, maintenance, operation, or administration of an
electronic tax administration system.
SECTION 3. 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, 2023.
______________________________ ______________________________
President of the Senate Speaker of the House
I certify that H.B. No. 1689 was passed by the House on April
26, 2023, by the following vote: Yeas 142, Nays 4, 1 present, not
voting.
______________________________
Chief Clerk of the House
I certify that H.B. No. 1689 was passed by the Senate on May
17, 2023, by the following vote: Yeas 27, Nays 4.
______________________________
Secretary of the Senate
APPROVED: _____________________
Date
_____________________
Governor