| 1 | 1 | | 89R13953 CJD-F |
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| 2 | 2 | | By: Hunter H.B. No. 4095 |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | |
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| 6 | 6 | | |
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| 7 | 7 | | A BILL TO BE ENTITLED |
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| 8 | 8 | | AN ACT |
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| 9 | 9 | | relating to the rate of the hotel occupancy tax in certain |
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| 10 | 10 | | municipalities and the use of certain revenue from that tax by those |
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| 11 | 11 | | municipalities; authorizing an increase in the rate of a tax. |
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| 12 | 12 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 13 | 13 | | SECTION 1. Section 351.003, Tax Code, is amended by adding |
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| 14 | 14 | | Subsection (g) to read as follows: |
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| 15 | 15 | | (g) This subsection applies only to an eligible coastal |
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| 16 | 16 | | municipality that has a population of 5,000 or less and in which a |
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| 17 | 17 | | ferry system that is a part of the state highway system is located. |
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| 18 | 18 | | The rate in a municipality to which this subsection applies may |
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| 19 | 19 | | exceed the rate authorized by Subsection (a), but may not exceed |
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| 20 | 20 | | eight percent of the price paid for a room, if a temporary increase |
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| 21 | 21 | | in the tax rate is approved by a majority of the voters of the |
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| 22 | 22 | | municipality voting at an election held for that purpose. This |
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| 23 | 23 | | subsection expires December 31, 2035. |
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| 24 | 24 | | SECTION 2. Section 351.105, Tax Code, is amended by |
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| 25 | 25 | | amending Subsection (a) and adding Subsections (h), (i), and (j) to |
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| 26 | 26 | | read as follows: |
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| 27 | 27 | | (a) An eligible coastal municipality that levies and |
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| 28 | 28 | | collects an occupancy tax authorized by this chapter at a rate of |
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| 29 | 29 | | seven percent shall pledge a portion of the revenue equal to at |
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| 30 | 30 | | least one percent of the cost of a room to either or both of the |
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| 31 | 31 | | following purposes: |
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| 32 | 32 | | (1) the payment of the bonds that the municipality or a |
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| 33 | 33 | | park board of trustees may issue under Section 1504.002(a), |
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| 34 | 34 | | Government Code, or under Chapter 306, Local Government Code, in |
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| 35 | 35 | | order to provide all or part of the funds for the establishment, |
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| 36 | 36 | | acquisition, purchase, construction, improvement, enlargement, |
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| 37 | 37 | | equipment, or repair of public improvements, including parks, civic |
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| 38 | 38 | | centers, civic center buildings, auditoriums, exhibition halls, |
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| 39 | 39 | | coliseums, marinas, cruise ship terminal facilities, hotels, |
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| 40 | 40 | | motels, parking facilities, streetscapes, golf courses, trolley or |
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| 41 | 41 | | trolley transportation systems, and other facilities as may be |
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| 42 | 42 | | considered advisable in connection with these facilities that serve |
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| 43 | 43 | | the purpose of attracting visitors and tourists to the |
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| 44 | 44 | | municipality; or |
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| 45 | 45 | | (2) the maintenance, improvement, or operation of the |
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| 46 | 46 | | parks, civic centers, civic center buildings, auditoriums, |
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| 47 | 47 | | exhibition halls, coliseums, marinas, cruise ship terminal |
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| 48 | 48 | | facilities, hotels, motels, parking facilities, streetscapes, golf |
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| 49 | 49 | | courses, trolley or trolley transportation systems, and other |
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| 50 | 50 | | facilities as may be considered advisable in connection with these |
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| 51 | 51 | | facilities that serve the purpose of attracting visitors and |
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| 52 | 52 | | tourists to the municipality. |
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| 53 | 53 | | (h) If the tax authorized by this chapter is imposed by an |
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| 54 | 54 | | eligible coastal municipality to which Section 351.003(g) applies |
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| 55 | 55 | | at a rate of more than seven percent of the cost of a room, the |
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| 56 | 56 | | municipality may, subject to Subsection (i), use all or part of the |
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| 57 | 57 | | revenue derived from the application of the tax at a rate of more |
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| 58 | 58 | | than seven percent for the beautification of streetscapes and the |
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| 59 | 59 | | improvement of the municipality's main streets, including |
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| 60 | 60 | | improvements relating to pedestrian safety and accessibility. |
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| 61 | 61 | | (i) A municipality described by Subsection (h) may not spend |
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| 62 | 62 | | more revenue for the purposes described by that subsection during a |
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| 63 | 63 | | calendar year than the total amount the municipality spends for |
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| 64 | 64 | | those purposes from all other sources of funds. |
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| 65 | 65 | | (j) Subsections (h) and (i) and this subsection expire |
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| 66 | 66 | | December 31, 2035. |
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| 67 | 67 | | SECTION 3. This Act takes effect immediately if it receives |
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| 68 | 68 | | a vote of two-thirds of all the members elected to each house, as |
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| 69 | 69 | | provided by Section 39, Article III, Texas Constitution. If this |
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| 70 | 70 | | Act does not receive the vote necessary for immediate effect, this |
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| 71 | 71 | | Act takes effect September 1, 2025. |
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