| 1 | 1 | | 88R1682 CJC-F |
|---|
| 2 | 2 | | By: Vasut H.B. No. 550 |
|---|
| 3 | 3 | | |
|---|
| 4 | 4 | | |
|---|
| 5 | 5 | | A BILL TO BE ENTITLED |
|---|
| 6 | 6 | | AN ACT |
|---|
| 7 | 7 | | relating to the use of municipal hotel occupancy tax revenue for |
|---|
| 8 | 8 | | certain infrastructure projects and public parks. |
|---|
| 9 | 9 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
|---|
| 10 | 10 | | SECTION 1. Subchapter B, Chapter 351, Tax Code, is amended |
|---|
| 11 | 11 | | by adding Section 351.1011 to read as follows: |
|---|
| 12 | 12 | | Sec. 351.1011. USE OF TAX REVENUE FOR CERTAIN |
|---|
| 13 | 13 | | INFRASTRUCTURE PROJECTS AND PUBLIC PARKS. (a) In this section, |
|---|
| 14 | 14 | | "qualified infrastructure" means: |
|---|
| 15 | 15 | | (1) a road, street, highway, bridge, overpass, |
|---|
| 16 | 16 | | underpass, or interchange: |
|---|
| 17 | 17 | | (A) from which an entrance to a hotel is |
|---|
| 18 | 18 | | accessible; or |
|---|
| 19 | 19 | | (B) that constitutes, wholly or partly, the |
|---|
| 20 | 20 | | shortest route between a hotel and a state highway, interstate |
|---|
| 21 | 21 | | highway, public beach, visitor or tourism information center, or |
|---|
| 22 | 22 | | convention center facility or complex that is located within five |
|---|
| 23 | 23 | | miles of the hotel; |
|---|
| 24 | 24 | | (2) a water supply system from which a hotel receives |
|---|
| 25 | 25 | | water; |
|---|
| 26 | 26 | | (3) a sanitary sewer system into which a hotel |
|---|
| 27 | 27 | | discharges wastewater; or |
|---|
| 28 | 28 | | (4) a storm drainage system into which runoff from a |
|---|
| 29 | 29 | | hotel flows. |
|---|
| 30 | 30 | | (b) In addition to the purposes provided by Section |
|---|
| 31 | 31 | | 351.101(a), a municipality may use revenue from the municipal hotel |
|---|
| 32 | 32 | | occupancy tax to promote tourism and the convention and hotel |
|---|
| 33 | 33 | | industry by: |
|---|
| 34 | 34 | | (1) acquiring, constructing, repairing, remodeling, |
|---|
| 35 | 35 | | or expanding qualified infrastructure that is owned by the |
|---|
| 36 | 36 | | municipality and that is located not more than one mile from a |
|---|
| 37 | 37 | | hotel; and |
|---|
| 38 | 38 | | (2) making improvements to a public park that is owned |
|---|
| 39 | 39 | | by the municipality and that is located not more than one mile from |
|---|
| 40 | 40 | | a hotel. |
|---|
| 41 | 41 | | (c) The amount of municipal hotel occupancy tax revenue a |
|---|
| 42 | 42 | | municipality may use in a fiscal year for a purpose authorized under |
|---|
| 43 | 43 | | this section may not exceed 20 percent of the amount of revenue the |
|---|
| 44 | 44 | | municipality collected from that tax during the preceding fiscal |
|---|
| 45 | 45 | | year. |
|---|
| 46 | 46 | | (d) A municipality that uses municipal hotel occupancy tax |
|---|
| 47 | 47 | | revenue under this section: |
|---|
| 48 | 48 | | (1) may, notwithstanding the limitation under |
|---|
| 49 | 49 | | Subsection (c), reserve not more than 20 percent of the revenue from |
|---|
| 50 | 50 | | that tax collected in a fiscal year for use under this section |
|---|
| 51 | 51 | | during the succeeding three fiscal years; and |
|---|
| 52 | 52 | | (2) may not reduce the percentage of revenue from that |
|---|
| 53 | 53 | | tax allocated for a purpose described by Section 351.101(a)(3) to a |
|---|
| 54 | 54 | | percentage that is less than the average percentage of the revenue |
|---|
| 55 | 55 | | from that tax allocated by the municipality for the purpose |
|---|
| 56 | 56 | | described by Section 351.101(a)(3) during the 36-month period |
|---|
| 57 | 57 | | preceding the date the municipality begins using revenue for a |
|---|
| 58 | 58 | | purpose described by this section. |
|---|
| 59 | 59 | | SECTION 2. This Act takes effect immediately if it receives |
|---|
| 60 | 60 | | a vote of two-thirds of all the members elected to each house, as |
|---|
| 61 | 61 | | provided by Section 39, Article III, Texas Constitution. If this |
|---|
| 62 | 62 | | Act does not receive the vote necessary for immediate effect, this |
|---|
| 63 | 63 | | Act takes effect September 1, 2023. |
|---|