BILL ANALYSIS Senate Research Center C.S.H.B. 3453 88R30527 CJD-D By: Jetton (Miles) Natural Resources & Economic Development 5/18/2023 Committee Report (Substituted) AUTHOR'S / SPONSOR'S STATEMENT OF INTENT Fort Bend County is a fast growing county with lots to offer to visitors. In order to promote itself and its amenities to increase tourism, the county is looking to impose a hotel occupancy tax. H.B 3453 amends Section 352.002 of the Tax Code to allow the commissioners courts of counties that have a population of over 800,000 and are adjacent to counties with a population of over four million to impose the hotel occupancy tax as provided by Subsection (a). This tax rate may not exceed seven percent of the price paid for a hotel room. However, when the hotel is located in a municipality or in the jurisdiction of a municipality that imposes a hotel occupancy tax, the tax rate may not exceed two percent. Committee Substitute: The committee substitute for H.B. 3453 removes the provision that states that the occupancy tax would be used for the operation, maintenance, and upkeep of a multi-event sports and entertainment venue. C.S.H.B. 3453 amends current law relating to authorizing certain counties to impose a hotel occupancy tax and the applicability and rates of that tax in certain counties. RULEMAKING AUTHORITY This bill does not expressly grant any additional rulemaking authority to a state officer, institution, or agency. SECTION BY SECTION ANALYSIS SECTION 1. Amends Section 352.002, Tax Code, by adding Subsection (ee), as follows: (ee) Authorizes the commissioners court of a county that has a population of 800,000 or more and is adjacent to a county with a population of four million or more to impose a tax as provided by Subsection (a) (relating to authorizing the commissioners court of certain counties to impose a tax on a person who pays for the use of a room that is a hotel of a certain price point and that is ordinarily used for sleeping). SECTION 2. Amends Section 352.003, Tax Code, by adding Subsection (bb), as follows: (bb) Prohibits the tax rate in a county authorized to impose the tax under Section 352.002(ee) from exceeding seven percent of the price paid for a room in a hotel, except that the tax rate is prohibited from exceeding two percent of the price paid for a room in a hotel if the hotel is located in: (1) a municipality that imposes a tax under Chapter 351 (Municipal Hotel Occupancy Taxes) applicable to the hotel; or (2) the extraterritorial jurisdiction of a municipality that imposes a tax under Section 351.0025 (Extraterritorial Jurisdiction) applicable to the hotel. SECTION 3. Effective date: September 1, 2023.
BILL ANALYSIS
Senate Research Center C.S.H.B. 3453
88R30527 CJD-D By: Jetton (Miles)
Natural Resources & Economic Development
5/18/2023
Committee Report (Substituted)
Senate Research Center
C.S.H.B. 3453
88R30527 CJD-D
By: Jetton (Miles)
Natural Resources & Economic Development
5/18/2023
Committee Report (Substituted)
AUTHOR'S / SPONSOR'S STATEMENT OF INTENT
Fort Bend County is a fast growing county with lots to offer to visitors. In order to promote itself and its amenities to increase tourism, the county is looking to impose a hotel occupancy tax.
H.B 3453 amends Section 352.002 of the Tax Code to allow the commissioners courts of counties that have a population of over 800,000 and are adjacent to counties with a population of over four million to impose the hotel occupancy tax as provided by Subsection (a). This tax rate may not exceed seven percent of the price paid for a hotel room. However, when the hotel is located in a municipality or in the jurisdiction of a municipality that imposes a hotel occupancy tax, the tax rate may not exceed two percent.
Committee Substitute:
The committee substitute for H.B. 3453 removes the provision that states that the occupancy tax would be used for the operation, maintenance, and upkeep of a multi-event sports and entertainment venue.
C.S.H.B. 3453 amends current law relating to authorizing certain counties to impose a hotel occupancy tax and the applicability and rates of that tax in certain counties.
RULEMAKING AUTHORITY
This bill does not expressly grant any additional rulemaking authority to a state officer, institution, or agency.
SECTION BY SECTION ANALYSIS
SECTION 1. Amends Section 352.002, Tax Code, by adding Subsection (ee), as follows:
(ee) Authorizes the commissioners court of a county that has a population of 800,000 or more and is adjacent to a county with a population of four million or more to impose a tax as provided by Subsection (a) (relating to authorizing the commissioners court of certain counties to impose a tax on a person who pays for the use of a room that is a hotel of a certain price point and that is ordinarily used for sleeping).
SECTION 2. Amends Section 352.003, Tax Code, by adding Subsection (bb), as follows:
(bb) Prohibits the tax rate in a county authorized to impose the tax under Section 352.002(ee) from exceeding seven percent of the price paid for a room in a hotel, except that the tax rate is prohibited from exceeding two percent of the price paid for a room in a hotel if the hotel is located in:
(1) a municipality that imposes a tax under Chapter 351 (Municipal Hotel Occupancy Taxes) applicable to the hotel; or
(2) the extraterritorial jurisdiction of a municipality that imposes a tax under Section 351.0025 (Extraterritorial Jurisdiction) applicable to the hotel.
SECTION 3. Effective date: September 1, 2023.