Texas 2025 - 89th Regular

Texas Senate Bill SB1592 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1		-	By: Blanco, Alvarado S.B. No. 1592
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3		-
	1	+	By: Blanco, Alvarado, Hinojosa of Nueces S.B. No. 1592
	2	+	(In the Senate - Filed February 24, 2025; March 10, 2025,
	3	+	read first time and referred to Committee on Economic Development;
	4	+	April 7, 2025, reported adversely, with favorable Committee
	5	+	Substitute by the following vote: Yeas 5, Nays 0; April 7, 2025,
	6	+	sent to printer.)
	7	+	Click here to see the committee vote
	8	+	COMMITTEE SUBSTITUTE FOR S.B. No. 1592 By: Schwertner
4	9
5	10
6	11		A BILL TO BE ENTITLED
7	12		AN ACT
8	13		relating to the collection of state and local hotel occupancy taxes
9	14		and assessments related to hotels by an accommodations
10	15		intermediary.
11	16		BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
12	17		SECTION 1. Subchapter B, Chapter 156, Tax Code, is amended
13	18		by adding Section 156.054 to read as follows:
14	19		Sec. 156.054. TAX COLLECTION BY ACCOMMODATIONS
15	20		INTERMEDIARY. (a) In this section:
16	21		(1) "Accommodations intermediary" means, subject to
17	22		Subsection (b), a person that:
18	23		(A) facilitates the rental of a room or space in a
19	24		hotel in this state to a person; and
20	25		(B) performs any of the following actions:
21	26		(i) collects from the person the amount
22	27		paid for the use or possession or for the right to the use or
23	28		possession of a room or space in the hotel; or
24	29		(ii) collects from either the person
25	30		renting the room or space in the hotel or the person owning,
26	31		operating, managing, or controlling the hotel a fee for the service
27	32		described by Paragraph (A).
28	33		(2) "Booking charge" means the amount paid by a person
29	34		for the use or possession or for the right to the use or possession
30	35		of a room or space in a hotel in this state and on which a hotel
31	36		occupancy tax is imposed. The term does not include the amount
32	37		charged by an accommodations intermediary for facilitating the
33	38		rental of the room or space in the hotel. The booking charge is
34	39		considered the price paid for a room or space in a hotel for
35	40		purposes of the imposition of a hotel occupancy tax when the rental
36	41		of the room or space is facilitated by an accommodations
37	42		intermediary.
38	43		(b) The term "accommodations intermediary" does not include
39	44		a person that facilitates the rental of a room or space in a hotel
40	45		solely on behalf of an affiliated person, including a franchisee,
41	46		operating under a shared hotel brand.
42	47		(c) For purposes of this section, a person facilitates the
43	48		rental of a room or space in a hotel in this state by providing a
44	49		physical or electronic medium through which a person other than the
45	50		owner or operator of the medium rents a room or space in the hotel.
46	51		(d) Notwithstanding Section 156.053 or any other law and
47	52		except as provided by this section:
48	53		(1) an accommodations intermediary:
49	54		(A) shall collect the appropriate amount of the
50	55		tax imposed under this chapter on each booking charge with respect
51	56		to a hotel located in this state;
52	57		(B) shall report and remit all taxes collected by
53	58		the accommodations intermediary under Paragraph (A) to the
54	59		comptroller in the manner required of a person owning, operating,
55	60		managing, or controlling a hotel under this chapter in accordance
56	61		with a schedule prescribed by the comptroller; and
57	62		(C) is considered to be the person owning,
58	63		operating, managing, or controlling the hotel for purposes of the
59	64		collection and enforcement of the tax imposed under this chapter on
60	65		a booking charge for a room or space in the hotel made through the
61	66		accommodations intermediary; and
62	67		(2) the hotel may not collect and is not liable for a
63	68		tax imposed by this chapter on a booking charge for a room or space
64	69		in the hotel made through the accommodations intermediary.
65	70		(e) The comptroller shall adopt a form an accommodations
66	71		intermediary must use to report the taxes collected by the
67	72		accommodations intermediary under this section and, if applicable,
68	73		Sections 351.0043 and 352.0042. The form must include information
69	74		necessary for the comptroller to comply with the requirements of
70	75		Sections 151.429(h), 351.1015, and 351.102 and Subchapter C,
71	76		Chapter 351.
72	77		(f) The form described by Subsection (e) may not require the
73	78		identification of a specific guest or the owner or operator of a
74	79		hotel, except as necessary for the comptroller to comply with the
75	80		requirements of Sections 151.429(h), 351.1015, and 351.102 and
76	81		Subchapter C, Chapter 351.
77	82		(g) The comptroller shall make available to an
78	83		accommodations intermediary:
79	84		(1) a map that demonstrates the boundaries of each
80	85		area designated as a project financing zone under Section 351.1015;
81	86		(2) the name, address, and boundaries of each hotel
82	87		project, qualified hotel project, and qualified hotel for which a
83	88		municipality or owner is entitled to a rebate, refund, or payment of
84	89		hotel occupancy taxes under Section 151.429(h) or 351.102 or
85	90		Subchapter C, Chapter 351, as well as any other information
86	91		necessary to identify the location of the hotel project, qualified
87	92		hotel project, or qualified hotel; and
88	93		(3) a list that:
89	94		(A) is maintained and continuously updated; and
90	95		(B) provides the rate of the hotel occupancy tax
91	96		imposed by the state under this chapter and the rate of the hotel
92	97		occupancy tax imposed by each municipality and other political
93	98		subdivision that imposes a hotel occupancy tax.
94	99		(h) The comptroller shall deposit and pay to the appropriate
95	100		municipality the hotel occupancy taxes remitted by an
96	101		accommodations intermediary that are attributable to booking
97	102		charges at a hotel located in a project financing zone or at a hotel
98	103		that is a hotel project, qualified hotel project, or qualified
99	104		hotel in accordance with Section 151.429(h), 351.1015, or 351.102
100	105		or Subchapter C, Chapter 351, and rules adopted by the comptroller
101	106		under those provisions.
102	107		(i) This section does not apply to an accommodations
103	108		intermediary that has entered into a written agreement with the
104	109		comptroller to collect and remit the tax imposed under this chapter
105	110		for the rental of a room or space in a hotel in this state
106	111		facilitated by the intermediary during the period the agreement is
107	112		in effect.
108	113		(j) Sections 111.0034, 111.0035, 111.0036, 111.006, and
109	114		111.025 apply to information provided or disclosed by an
110	115		accommodations intermediary under this chapter.
111	116		(k) The comptroller may adopt rules to implement and
112	117		administer this section.
113	118		SECTION 2. Subchapter A, Chapter 351, Tax Code, is amended
114	119		by adding Section 351.0043 to read as follows:
115	120		Sec. 351.0043. TAX COLLECTION BY ACCOMMODATIONS
116	121		INTERMEDIARY. (a) In this section, "accommodations intermediary"
117	122		and "booking charge" have the meanings assigned by Section 156.054.
118	123		(b) Notwithstanding Section 351.004 or any other law and
119	124		except as provided by this section:
120	125		(1) an accommodations intermediary:
121	126		(A) shall collect the appropriate amount of the
122	127		tax imposed under this chapter by a municipality in which a hotel is
123	128		located on each booking charge with respect to that hotel;
124	129		(B) shall report and remit all taxes collected by
125	130		the accommodations intermediary under Paragraph (A) to the
126	131		comptroller in accordance with a schedule prescribed by the
127	132		comptroller; and
128	133		(C) is considered to be the person owning,
129	134		operating, managing, or controlling the hotel for purposes of the
130	135		collection and enforcement of the tax imposed under this chapter on
131	136		a booking charge for a room or space in the hotel made through the
132	137		accommodations intermediary; and
133	138		(2) the hotel may not collect and is not liable for a
134	139		tax imposed by this chapter on a booking charge for a room or space
135	140		in the hotel made through the accommodations intermediary.
136	141		(c) An accommodations intermediary shall use the form
137	142		adopted by the comptroller under Section 156.054(e) to report the
138	143		taxes collected by the intermediary under this chapter.
139	144		(d) Subject to Section 156.054(h), the comptroller shall:
140	145		(1) deposit the taxes remitted to the comptroller
141	146		under this section in trust in the separate suspense account of the
142	147		municipality in which hotels with respect to which the taxes were
143	148		collected are located; and
144	149		(2) send to the municipal treasurer or to the person
145	150		who performs the office of the municipal treasurer payable to the
146	151		municipality the municipality's share of the taxes remitted to the
147	152		comptroller under this chapter at least 12 times during each state
148	153		fiscal year.
149	154		(e) A suspense account described by Subsection (d)(1) is
150	155		outside the treasury and the comptroller may make a payment from the
151	156		account without the necessity of an appropriation.
152	157		(f) Before sending any money to a municipality under
153	158		Subsection (d), the comptroller shall deduct and deposit to the
154	159		credit of the general revenue fund an amount equal to one percent of
155	160		the amount of the taxes collected from booking charges for hotels
156	161		located in the municipality under this section during the period
157	162		for which a distribution is made as the state's charge for services
158	163		provided by the state under this section.
159	164		(g) An accommodations intermediary that collects the tax
160	165		imposed by this chapter is subject to audit by the comptroller only
161	166		in regard to the accommodations intermediary's collection,
162	167		reporting, and remittance of the tax imposed by this chapter. The
163	168		accommodations intermediary is entitled to seek review and to
164	169		appeal a determination made by the comptroller in relation to the
165	170		collection of a tax imposed by this chapter:
166	171		(1) as provided by Chapter 111; and
167	172		(2) in the same manner provided for a tax imposed under
168	173		Chapter 151.
169	174		(h) Notwithstanding any other law, this section applies to
170	175		the collection, remittance, and distribution of taxes imposed by a
171	176		political subdivision that is authorized to impose a hotel
172	177		occupancy tax under a provision of the Special District Local Laws
173	178		Code or civil statutes in the same manner the section applies to a
174	179		municipality authorized to impose a hotel occupancy tax under this
175	180		chapter.
176	181		(i) This section does not apply to an accommodations
177	182		intermediary that has entered into an agreement with a municipality
178	183		or other political subdivision to collect and remit hotel occupancy
179	184		taxes for the rental of a room or space in a hotel in the
180	185		municipality or political subdivision that is facilitated by the
181	186		intermediary and provided written notice of the agreement to the
182	187		comptroller during the period the agreement is in effect.
183	188		(j) A municipality that adopts an ordinance imposing a tax
184	189		under this chapter in a year after the date on which the report
185	190		required under Section 351.009 is due may not impose the tax before
186	191		the 60th day after the date the municipality provides notice of the
187	192		rate of the tax to the comptroller.
188	193		(k) A political subdivision to which this section applies
189	194		under Subsection (h) that is not required to file with the
190	195		comptroller a report under Section 351.009 or a report that
191	196		contains substantially the same information shall annually report
192	197		to the comptroller the rate of the hotel occupancy tax imposed by
193	198		the political subdivision in the manner and on a date prescribed by
194	199		the comptroller. A political subdivision that adopts an ordinance,
195	200		order, or resolution imposing a hotel occupancy tax in a year after
196	201		the date on which the political subdivision is required to report
197	202		the rate of its hotel occupancy tax to the comptroller may not
198	203		impose the tax before the 60th day after the date the political
199	204		subdivision provides notice of the rate of the tax to the
200	205		comptroller.
201	206		(l) Notwithstanding any other law, an accommodations
202	207		intermediary that collects the tax imposed by this chapter at the
203	208		rate provided by the comptroller on the most recent list made
204	209		available under Section 156.054(g) may not be held liable for using
205	210		an incorrect tax rate when collecting and remitting the tax.
206	211		(m) Sections 111.0034, 111.0035, 111.0036, 111.006, and
207	212		111.025 apply to information provided or disclosed by an
208	213		accommodations intermediary under this chapter.
209	214		(n) The comptroller may adopt rules to implement and
210	215		administer this section.
211	216		SECTION 3. Subchapter A, Chapter 352, Tax Code, is amended
212	217		by adding Section 352.0042 to read as follows:
213	218		Sec. 352.0042. TAX COLLECTION BY ACCOMMODATIONS
214	219		INTERMEDIARY. (a) In this section, "accommodations intermediary"
215	220		and "booking charge" have the meanings assigned by Section 156.054.
216	221		(b) Notwithstanding Section 352.004 or any other law and
217	222		except as provided by this section:
218	223		(1) an accommodations intermediary:
219	224		(A) shall collect the appropriate amount of the
220	225		tax imposed under this chapter by a municipality in which a hotel is
221	226		located on each booking charge with respect to that hotel;
222	227		(B) shall report and remit all taxes collected by
223	228		the accommodations intermediary under Paragraph (A) to the
224	229		comptroller in accordance with a schedule prescribed by the
225	230		comptroller; and
226	231		(C) is considered to be the person owning,
227	232		operating, managing, or controlling the hotel for purposes of the
228	233		collection and enforcement of the tax imposed under this chapter on
229	234		a booking charge for a room or space in the hotel made through the
230	235		accommodations intermediary; and
231	236		(2) the hotel may not collect and is not liable for a
232	237		tax imposed by this chapter on a booking charge for a room or space
233	238		in the hotel made through the accommodations intermediary.
234	239		(c) An accommodations intermediary shall use the form
235	240		adopted by the comptroller under Section 156.054(e) to report the
236	241		taxes collected by the intermediary under this chapter.
237	242		(d) Subject to Section 156.054(h), the comptroller shall:
238	243		(1) deposit the taxes remitted to the comptroller
239	244		under this section in trust in the separate suspense account of the
240	245		county in which hotels with respect to which the taxes were
241	246		collected are located; and
242	247		(2) send to the county treasurer payable to the county
243	248		the county's share of the taxes remitted to the comptroller under
244	249		this chapter at least 12 times during each state fiscal year.
245	250		(e) A suspense account described by Subsection (d)(1) is
246	251		outside the treasury and the comptroller may make a payment from the
247	252		account without the necessity of an appropriation.
248	253		(f) Before sending any money to a county under Subsection
249	254		(d), the comptroller shall deduct and deposit to the credit of the
250	255		general revenue fund an amount equal to one percent of the amount of
251	256		the taxes collected from booking charges for hotels located in the
252	257		county under this section during the period for which a
253	258		distribution is made as the state's charge for services provided by
254	259		the state under this section.
255	260		(g) An accommodations intermediary that collects the tax
256	261		imposed by this chapter is subject to audit by the comptroller only
257	262		in regard to the accommodations intermediary's collection,
258	263		reporting, and remittance of the tax imposed by this chapter. The
259	264		accommodations intermediary is entitled to seek review and to
260	265		appeal a determination made by the comptroller in relation to the
261	266		collection of a tax imposed by this chapter:
262	267		(1) as provided by Chapter 111; and
263	268		(2) in the same manner provided for a tax imposed under
264	269		Chapter 151.
265	270		(h) Notwithstanding any other law, this section applies to
266	271		the collection, remittance, and distribution of taxes imposed by a
267	272		political subdivision that is authorized to impose a hotel
268	273		occupancy tax under a provision of the Special District Local Laws
269	274		Code or civil statutes in the same manner the section applies to a
270	275		county authorized to impose a hotel occupancy tax under this
271	276		chapter.
272	277		(i) This section does not apply to an accommodations
273	278		intermediary that has entered into an agreement with a county or
274	279		other political subdivision to collect and remit hotel occupancy
275	280		taxes for the rental of a room or space in a hotel in the county or
276	281		political subdivision that is facilitated by the intermediary and
277	282		provided written notice of the agreement to the comptroller during
278	283		the period the agreement is in effect.
279	284		(j) A county that adopts an order or resolution imposing a
280	285		tax under this chapter in a year after the date on which the report
281	286		required under Section 352.009 is due may not impose the tax before
282	287		the 60th day after the date the county provides notice of the rate
283	288		of the tax to the comptroller.
284	289		(k) A political subdivision to which this section applies
285	290		under Subsection (h) that is not required to file with the
286	291		comptroller a report under Section 352.009 or a report that
287	292		contains substantially the same information shall annually report
288	293		to the comptroller the rate of the hotel occupancy tax imposed by
289	294		the political subdivision in the manner and on a date prescribed by
290	295		the comptroller. A political subdivision that adopts an ordinance,
291	296		order, or resolution imposing a hotel occupancy tax in a year after
292	297		the date on which the political subdivision is required to report
293	298		the rate of its hotel occupancy tax to the comptroller may not
294	299		impose the tax before the 60th day after the date the political
295	300		subdivision provides notice of the rate of the tax to the
296	301		comptroller.
297	302		(l) Notwithstanding any other law, an accommodations
298	303		intermediary that collects the tax imposed by this chapter at the
299	304		rate provided by the comptroller on the most recent list made
300	305		available under Section 156.054(g) may not be held liable for using
301	306		an incorrect tax rate when collecting and remitting the tax.
302	307		(m) Sections 111.0034, 111.0035, 111.0036, 111.006, and
303	308		111.025 apply to information provided or disclosed by an
304	309		accommodations intermediary under this chapter.
305	310		(n) The comptroller may adopt rules to implement and
306	311		administer this section.
307	312		SECTION 4. Sections 334.253(a) and (b), Local Government
308	313		Code, are amended to read as follows:
309	314		(a) Sections 351.002(c), 351.004, 351.0041, 351.0043,
310	315		351.005, and 351.006, Tax Code, govern the imposition, computation,
311	316		administration, collection, and remittance of a municipal tax
312	317		authorized under this subchapter except as inconsistent with this
313	318		subchapter.
314	319		(b) Sections 352.002(c), 352.004, 352.0041, 352.0042,
315	320		352.005, and 352.007, Tax Code, govern the imposition, computation,
316	321		administration, collection, and remittance of a county tax
317	322		authorized under this subchapter except as inconsistent with this
318	323		subchapter.
319	324		SECTION 5. Subchapter A, Chapter 372, Local Government
320	325		Code, is amended by adding Section 372.0185 to read as follows:
321	326		Sec. 372.0185. COLLECTION OF ASSESSMENT BY ACCOMMODATIONS
322	327		INTERMEDIARY. (a) In this section, "accommodations intermediary"
323	328		has the meaning assigned by Section 156.054, Tax Code.
324	329		(b) This section applies only to a public improvement
325	330		district established by the governing body of a municipality or
326	331		county under this subchapter that levies against a hotel an
327	332		assessment that:
328	333		(1) is imposed on a percentage of the consideration
329	334		paid for occupancy of a sleeping room in the hotel; and
330	335		(2) is collected in the same manner and in accordance
331	336		with the same procedures as a hotel occupancy tax imposed by the
332	337		municipality or county that established the district.
333	338		(c) The governing body of a municipality or county that
334	339		establishes a public improvement district described by Subsection
335	340		(b) may require an accommodations intermediary to collect an
336	341		assessment levied against a hotel in the district if:
337	342		(1) a hotel in the district enters into an agreement
338	343		with an accommodations intermediary to have the assessment
339	344		collected by the accommodations intermediary;
340	345		(2) the hotel provides to the accommodations
341	346		intermediary the rate of the assessment to be collected as well as
342	347		any other information necessary for the accommodations
343	348		intermediary to collect the assessment; and
344	349		(3) the hotel agrees to remit the assessment to the
345	350		governing body of the municipality or county, as applicable, that
346	351		established the district.
347	352		(d) Notwithstanding any other law, if the governing body of
348	353		a municipality or county requires an accommodations intermediary to
349	354		collect an assessment under this section, the accommodations
350	355		intermediary may not be held liable for collecting the assessment
351	356		in an incorrect amount.
352	357		SECTION 6. (a) Not later than December 1, 2025, each
353	358		municipality, county, or other political subdivision that imposes a
354	359		hotel occupancy tax shall provide notice of the rate of that tax to
355	360		the comptroller of public accounts in the manner prescribed by the
356	361		comptroller.
357	362		(b) This section takes effect September 1, 2025.
358	363		SECTION 7. Except as otherwise provided by this Act, this
359	364		Act takes effect June 1, 2026.
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