88R13789 BEF-F
By: Reynolds H.B. No. 3243
A BILL TO BE ENTITLED
AN ACT
relating to the use by certain municipalities of municipal hotel
occupancy tax revenue for the enhancement and maintenance of public
parks.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subchapter B, Chapter 351, Tax Code, is amended
by adding Section 351.111 to read as follows:
Sec. 351.111. ALLOCATION OF REVENUE FOR PUBLIC PARKS BY
CERTAIN MUNICIPALITIES. (a) This section applies only to a
municipality that:
(1) has a population of more than 69,000; and
(2) is located in two counties, with 90 percent of the
municipality's territory located in a county with a population of
at least 580,000 and the remaining territory located in a county
with a population of at least four million.
(b) Notwithstanding any other provision of this chapter and
subject to the requirements of this section, a municipality to
which this section applies may use a portion of the revenue derived
from the tax imposed under this chapter to promote tourism and the
convention and hotel industry by enhancing and maintaining public
parks the municipality owns.
(c) The amount of municipal hotel occupancy tax revenue a
municipality may use in a fiscal year to enhance and maintain all
public parks may not exceed 10 percent of the amount of revenue the
municipality collected from that tax during the preceding fiscal
year.
(d) The amount of municipal hotel occupancy tax revenue a
municipality may use in a fiscal year to enhance and maintain an
individual public park may not exceed the amount of area hotel
revenue in the preceding fiscal year that was directly attributable
to tourists who attended events held at that park or otherwise
visited that park. Before the municipality uses municipal hotel
occupancy tax revenue to enhance or maintain a park, the
municipality must make a good faith estimate of the annual amount of
area hotel revenue directly attributable to tourists who visited
that park.
(e) A municipality that uses municipal hotel occupancy tax
revenue under this section:
(1) may, notwithstanding the limitation under
Subsection (c), reserve not more than 10 percent of the revenue from
that tax collected in a fiscal year for use under this section
during the succeeding three fiscal years; and
(2) 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. This Act takes effect September 1, 2023.