| 1 | 1 | | 89R12205 JBD-F |
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| 2 | 2 | | By: Wharton H.B. No. 4926 |
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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 authorizing certain counties to impose a hotel |
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| 10 | 10 | | occupancy tax and the use of revenue from that tax. |
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| 11 | 11 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 12 | 12 | | SECTION 1. Section 352.002, Tax Code, is amended by adding |
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| 13 | 13 | | Subsection (kk) to read as follows: |
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| 14 | 14 | | (kk) The commissioners court of a county with a population |
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| 15 | 15 | | of less than 100,000 that borders the Navasota River and in which an |
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| 16 | 16 | | annual renaissance festival is held may impose a tax as provided by |
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| 17 | 17 | | Subsection (a). A tax imposed under this subsection does not apply |
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| 18 | 18 | | to a hotel operated by a nonprofit organization exempt from federal |
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| 19 | 19 | | income taxation under Section 501(a), Internal Revenue Code of |
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| 20 | 20 | | 1986, by being listed as an exempt organization in Section |
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| 21 | 21 | | 501(c)(3) of that code. |
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| 22 | 22 | | SECTION 2. Section 352.003, Tax Code, is amended by adding |
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| 23 | 23 | | Subsection (gg) to read as follows: |
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| 24 | 24 | | (gg) The tax rate in a county authorized to impose the tax |
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| 25 | 25 | | under Section 352.002(kk) may not exceed seven percent of the price |
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| 26 | 26 | | paid for a room in a hotel, except that the tax rate may not exceed |
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| 27 | 27 | | two percent of the price paid for a room in a hotel if the hotel is |
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| 28 | 28 | | located in: |
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| 29 | 29 | | (1) a municipality that imposes a tax under Chapter |
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| 30 | 30 | | 351 applicable to the hotel; or |
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| 31 | 31 | | (2) the extraterritorial jurisdiction of a |
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| 32 | 32 | | municipality that imposes a tax under Section 351.0025 applicable |
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| 33 | 33 | | to the hotel. |
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| 34 | 34 | | SECTION 3. Subchapter B, Chapter 352, Tax Code, is amended |
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| 35 | 35 | | by adding Section 352.119 to read as follows: |
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| 36 | 36 | | Sec. 352.119. USE OF REVENUE: CERTAIN COUNTIES BORDERING |
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| 37 | 37 | | THE NAVASOTA RIVER. In addition to the purposes authorized by this |
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| 38 | 38 | | chapter, the revenue from a tax imposed under this chapter by a |
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| 39 | 39 | | county authorized to impose the tax under Section 352.002(kk) may |
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| 40 | 40 | | be used for: |
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| 41 | 41 | | (1) the construction, enlarging, equipping, |
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| 42 | 42 | | improvement, maintenance, repairing, and operation of a civic |
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| 43 | 43 | | center with an arena used for rodeos, livestock shows, or |
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| 44 | 44 | | agricultural expositions to enhance hotel activity and encourage |
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| 45 | 45 | | tourism; |
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| 46 | 46 | | (2) advertising and conducting solicitations and |
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| 47 | 47 | | promotional programs to attract tourists or convention delegates to |
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| 48 | 48 | | the county, any of which may be conducted by the county or through a |
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| 49 | 49 | | contract with a person or organization selected by the county; and |
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| 50 | 50 | | (3) encouraging, promoting, and improving historical |
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| 51 | 51 | | preservation and restoration efforts. |
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| 52 | 52 | | SECTION 4. This Act takes effect immediately if it receives |
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| 53 | 53 | | a vote of two-thirds of all the members elected to each house, as |
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| 54 | 54 | | provided by Section 39, Article III, Texas Constitution. If this |
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| 55 | 55 | | Act does not receive the vote necessary for immediate effect, this |
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| 56 | 56 | | Act takes effect September 1, 2025. |
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