| 1 | 1 | | 88R13015 CJD-D |
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| 2 | 2 | | By: Lozano H.B. No. 3598 |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | A BILL TO BE ENTITLED |
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| 6 | 6 | | AN ACT |
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| 7 | 7 | | relating to the use of municipal hotel occupancy tax revenue by |
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| 8 | 8 | | certain municipalities. |
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| 9 | 9 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 10 | 10 | | SECTION 1. Subchapter B, Chapter 351, Tax Code, is amended |
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| 11 | 11 | | by adding Section 351.10691 to read as follows: |
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| 12 | 12 | | Sec. 351.10691. ALLOCATION OF REVENUE: CERTAIN |
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| 13 | 13 | | MUNICIPALITIES. (a) This section applies only to a municipality |
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| 14 | 14 | | that is the county seat of a county that: |
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| 15 | 15 | | (1) has a population of less than 40,000; |
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| 16 | 16 | | (2) contains a portion of Lake Corpus Christi; and |
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| 17 | 17 | | (3) is adjacent to a county that has a population of |
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| 18 | 18 | | less than 400,000 and contains a municipality with a population of |
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| 19 | 19 | | at least 300,000. |
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| 20 | 20 | | (b) In addition to other authorized uses, a municipality to |
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| 21 | 21 | | which this section applies may use revenue derived from the tax |
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| 22 | 22 | | imposed under this chapter to promote tourism by enhancing and |
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| 23 | 23 | | upgrading an existing sports facility or field, provided that the |
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| 24 | 24 | | municipality complies with Section 351.1076. |
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| 25 | 25 | | SECTION 2. Section 351.1076(a), Tax Code, is amended to |
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| 26 | 26 | | read as follows: |
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| 27 | 27 | | (a) A municipality that spends municipal hotel occupancy |
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| 28 | 28 | | tax revenue for the enhancement and upgrading of existing sports |
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| 29 | 29 | | facilities or fields as authorized by Section 351.101(a)(7) or (n), |
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| 30 | 30 | | Section 351.1069, Section 351.10691, or Section 351.10711: |
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| 31 | 31 | | (1) shall determine the amount of municipal hotel |
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| 32 | 32 | | occupancy tax revenue generated for the municipality by hotel |
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| 33 | 33 | | activity attributable to the sports events and tournaments held on |
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| 34 | 34 | | the enhanced or upgraded facilities or fields for five years after |
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| 35 | 35 | | the date the enhancements and upgrades are completed; and |
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| 36 | 36 | | (2) may not spend hotel occupancy tax revenue for the |
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| 37 | 37 | | enhancement and upgrading of the facilities or fields in a total |
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| 38 | 38 | | amount that exceeds the amount of area hotel revenue attributable |
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| 39 | 39 | | to the enhancements and upgrades. |
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| 40 | 40 | | SECTION 3. This Act takes effect September 1, 2023. |
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