89R12205 JBD-F
By: Wharton H.B. No. 4926
A BILL TO BE ENTITLED
AN ACT
relating to authorizing certain counties to impose a hotel
occupancy tax and the use of revenue from that tax.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 352.002, Tax Code, is amended by adding
Subsection (kk) to read as follows:
(kk) The commissioners court of a county with a population
of less than 100,000 that borders the Navasota River and in which an
annual renaissance festival is held may impose a tax as provided by
Subsection (a). A tax imposed under this subsection does not apply
to a hotel operated by a nonprofit organization exempt from federal
income taxation under Section 501(a), Internal Revenue Code of
1986, by being listed as an exempt organization in Section
501(c)(3) of that code.
SECTION 2. Section 352.003, Tax Code, is amended by adding
Subsection (gg) to read as follows:
(gg) The tax rate in a county authorized to impose the tax
under Section 352.002(kk) may not exceed seven percent of the price
paid for a room in a hotel, except that the tax rate may not exceed
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 applicable to the hotel; or
(2) the extraterritorial jurisdiction of a
municipality that imposes a tax under Section 351.0025 applicable
to the hotel.
SECTION 3. Subchapter B, Chapter 352, Tax Code, is amended
by adding Section 352.119 to read as follows:
Sec. 352.119. USE OF REVENUE: CERTAIN COUNTIES BORDERING
THE NAVASOTA RIVER. In addition to the purposes authorized by this
chapter, the revenue from a tax imposed under this chapter by a
county authorized to impose the tax under Section 352.002(kk) may
be used for:
(1) the construction, enlarging, equipping,
improvement, maintenance, repairing, and operation of a civic
center with an arena used for rodeos, livestock shows, or
agricultural expositions to enhance hotel activity and encourage
tourism;
(2) advertising and conducting solicitations and
promotional programs to attract tourists or convention delegates to
the county, any of which may be conducted by the county or through a
contract with a person or organization selected by the county; and
(3) encouraging, promoting, and improving historical
preservation and restoration efforts.
SECTION 4. This Act takes effect immediately if it receives
a vote of two-thirds of all the members elected to each house, as
provided by Section 39, Article III, Texas Constitution. If this
Act does not receive the vote necessary for immediate effect, this
Act takes effect September 1, 2025.