88R10730 CJD-F
By: Klick H.B. No. 3216
A BILL TO BE ENTITLED
AN ACT
relating to the use of hotel occupancy tax revenue by certain
municipalities.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subchapter B, Chapter 351, Tax Code, is amended
by adding Section 351.1062 to read as follows:
Sec. 351.1062. ALLOCATION OF REVENUE: CERTAIN
MUNICIPALITIES WITH CITY PARKS. (a) This section applies only to a
municipality that:
(1) has a population of more than 7,500 but less than
12,000;
(2) has at least one hotel within 350 feet of a city
park; and
(3) is wholly located in a county with a population of
more than 1.8 million but less than 2.3 million.
(b) Notwithstanding any other provision of this chapter and
subject to Subsections (c) and (d), a municipality to which this
section applies may use revenue from the tax imposed under this
chapter to promote tourism and the convention and hotel industry by
constructing a sports facility and amphitheater.
(c) A municipality that uses revenue derived from the tax
imposed under this chapter for the purpose described by Subsection
(b):
(1) shall make a good-faith estimate of the amount of
area hotel revenue that will be generated by events and activities
held at the sports facility and amphitheater during the five-year
period following the date on which construction is completed; and
(2) may not spend hotel occupancy tax revenue for the
construction of the sports facility and amphitheater in a total
amount that exceeds the amount of area hotel revenue estimated
under Subdivision (1).
(d) At the end of the five-year period described by
Subsection (c)(1), a municipality shall reimburse from the
municipality's general fund to the municipality's hotel occupancy
tax revenue fund any municipal hotel occupancy tax revenue spent on
the construction of the sports facility and amphitheater in excess
of the amount of area hotel revenue attributable to the sports
facility and amphitheater during that period.
SECTION 2. 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.