88R13015 CJD-D
By: Lozano H.B. No. 3598
A BILL TO BE ENTITLED
AN ACT
relating to the use of municipal 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 351.10691 to read as follows:
Sec. 351.10691. ALLOCATION OF REVENUE: CERTAIN
MUNICIPALITIES. (a) This section applies only to a municipality
that is the county seat of a county that:
(1) has a population of less than 40,000;
(2) contains a portion of Lake Corpus Christi; and
(3) is adjacent to a county that has a population of
less than 400,000 and contains a municipality with a population of
at least 300,000.
(b) In addition to other authorized uses, a municipality to
which this section applies may use revenue derived from the tax
imposed under this chapter to promote tourism by enhancing and
upgrading an existing sports facility or field, provided that the
municipality complies with Section 351.1076.
SECTION 2. Section 351.1076(a), Tax Code, is amended to
read as follows:
(a) A municipality that spends municipal hotel occupancy
tax revenue for the enhancement and upgrading of existing sports
facilities or fields as authorized by Section 351.101(a)(7) or (n),
Section 351.1069, Section 351.10691, or Section 351.10711:
(1) shall determine the amount of municipal hotel
occupancy tax revenue generated for the municipality by hotel
activity attributable to the sports events and tournaments held on
the enhanced or upgraded facilities or fields for five years after
the date the enhancements and upgrades are completed; and
(2) may not spend hotel occupancy tax revenue for the
enhancement and upgrading of the facilities or fields in a total
amount that exceeds the amount of area hotel revenue attributable
to the enhancements and upgrades.
SECTION 3. This Act takes effect September 1, 2023.