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A BILL TO BE ENTITLED
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AN ACT
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relating to the collection of state, municipal, and county hotel |
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occupancy taxes by a short-term rental marketplace. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subchapter B, Chapter 156, Tax Code, is amended |
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by adding Section 156.054 to read as follows: |
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Sec. 156.054. TAX COLLECTION BY SHORT-TERM RENTAL |
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MARKETPLACE. (a) For purposes of this section: |
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(1) "Booking charge" means the charge imposed on a |
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person by a host for the purpose of renting a short-term rental in |
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this state and includes any fees charged by the host, regardless of |
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whether separately itemized. The booking charge is considered the |
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price paid for a room or space in a hotel for purposes of the |
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imposition of a hotel occupancy tax. |
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(2) "Host" means a person who owns a short-term rental |
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and offers the short-term rental for rent through a short-term |
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rental marketplace or, if applicable, that person's authorized |
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agent who offers the short-term rental for rent through a |
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short-term rental marketplace. |
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(3) "Short-term rental" has the meaning assigned by |
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Section 156.001. |
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(4) "Short-term rental marketplace" means a |
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marketplace, Internet website, mobile application, or other |
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platform: |
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(A) through which a host offers a short-term |
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rental for rent; and |
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(B) that collects the booking charge for the |
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rental of the short-term rental. |
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(b) Notwithstanding Section 156.053 or any other law: |
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(1) a short-term rental marketplace: |
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(A) shall collect the appropriate amount of the |
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tax imposed under this chapter on each booking charge with respect |
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to a short-term rental located in this state; |
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(B) shall report and remit all taxes collected by |
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the short-term rental marketplace under Paragraph (A) in the manner |
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required: |
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(i) of a person owning, operating, |
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managing, or controlling a hotel under this chapter; or |
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(ii) if applicable, by an agreement under |
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Subsection (c); and |
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(C) is considered to be the person owning, |
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operating, managing, or controlling the short-term rental for |
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purposes of the collection and enforcement of the tax imposed under |
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this chapter; and |
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(2) the host may not collect and is not liable for a |
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tax imposed by this chapter on a booking charge for a rental made |
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through the short-term rental marketplace. |
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(c) A short-term rental marketplace may enter into an |
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agreement with a third-party vendor to remit to the comptroller the |
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taxes imposed by this chapter that the short-term rental |
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marketplace collects. During the period the agreement is in effect: |
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(1) the short-term rental marketplace shall report and |
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remit all taxes collected by the short-term rental marketplace |
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under Subsection (b) to the third-party vendor on a schedule |
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determined by the vendor; and |
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(2) the vendor shall report and remit the taxes |
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described by Subdivision (1) to the comptroller in the manner a |
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person owning, operating, managing, or controlling a hotel is |
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required to report and remit taxes under this chapter. |
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(d) The comptroller may adopt rules to implement and |
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administer this section. |
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SECTION 2. Subchapter A, Chapter 351, Tax Code, is amended |
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by adding Section 351.0043 to read as follows: |
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Sec. 351.0043. TAX COLLECTION BY SHORT-TERM RENTAL |
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MARKETPLACE. (a) For purposes of this section: |
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(1) "Booking charge," "host," and "short-term rental |
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marketplace" have the meanings assigned by Section 156.054. |
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(2) "Short-term rental" has the meaning assigned by |
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Section 156.001. |
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(b) Notwithstanding Section 351.004 or any other law: |
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(1) a short-term rental marketplace: |
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(A) shall collect the appropriate amount of the |
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tax imposed under this chapter by a municipality in which a |
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short-term rental is located on each booking charge with respect to |
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that short-term rental; |
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(B) shall report and remit all taxes collected by |
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the short-term rental marketplace under Paragraph (A) in the manner |
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required: |
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(i) of a person owning, operating, |
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managing, or controlling a hotel under this chapter and in |
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accordance with the ordinance adopted by the municipality imposing |
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the tax; or |
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(ii) if applicable, by an agreement under |
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this section; and |
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(C) is considered to be the person owning, |
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operating, managing, or controlling the short-term rental for |
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purposes of the collection and enforcement of the tax imposed under |
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this chapter; and |
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(2) the host may not collect and is not liable for a |
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tax imposed by this chapter on a booking charge for a rental made |
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through the short-term rental marketplace. |
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(c) A short-term rental marketplace may: |
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(1) enter into an agreement with the comptroller to |
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collect and remit to the comptroller the taxes imposed by a |
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municipality under this chapter on each booking charge for a rental |
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made through the short-term rental marketplace; or |
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(2) enter into an agreement with a third-party vendor |
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to remit to the municipality the taxes described by Subdivision (1) |
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that the short-term rental marketplace collects. |
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(d) To be effective, an agreement described by Subsection |
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(c)(2) must be approved by the governing body of the municipality. |
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During the period an agreement described by Subsection (c) is in |
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effect, the short-term rental marketplace shall report and remit |
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all taxes collected by the short-term rental marketplace under |
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Subsection (b) to: |
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(1) the comptroller on a schedule determined by the |
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comptroller, if the agreement in effect is with the comptroller; or |
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(2) the third-party vendor on a schedule determined by |
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the vendor, if the agreement in effect is with a vendor. |
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(e) The comptroller or third-party vendor, as applicable, |
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shall promulgate a form a short-term rental marketplace must use to |
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report the taxes collected by the short-term rental marketplace |
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under this section if an agreement under Subsection (c) is in |
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effect. The form must include the following information: |
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(1) the total receipts from the rental during the |
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reporting period of all short-term rentals located in any |
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municipality that has approved an agreement under this section and |
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offered for rent through the short-term rental marketplace, |
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categorized by municipality in which those short-term rentals are |
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located; |
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(2) the total amount of booking charges from the |
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rental during the reporting period of all short-term rentals |
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located in any municipality that has approved an agreement under |
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this section and offered for rent through the short-term rental |
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marketplace, categorized by municipality in which those short-term |
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rentals are located; |
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(3) the rate of the tax imposed under this chapter in |
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each municipality identified under Subdivision (2); and |
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(4) the total receipts and the total amount of booking |
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charges from the rental during the reporting period of all |
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short-term rentals located in a project financing zone as defined |
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by Section 351.1015 and offered for rent through the short-term |
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rental marketplace, categorized by project financing zone. |
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(f) The form described by Subsection (e) may not require the |
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identification of a specific guest or the host of a short-term |
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rental. |
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(g) If the short-term rental marketplace collects and |
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remits to the comptroller the taxes imposed by the municipality |
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under this chapter in accordance with an agreement under Subsection |
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(c)(1), the comptroller shall: |
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(1) deposit the taxes remitted to the comptroller |
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under this section in trust in the separate suspense account of the |
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municipality in which short-term rentals with respect to which the |
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taxes were collected are located; and |
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(2) send to the municipal treasurer or to the person |
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who performs the office of the municipal treasurer payable to the |
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municipality the municipality's share of the taxes remitted to the |
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comptroller under this chapter at least 12 times during each state |
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fiscal year. |
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(h) A suspense account described by Subsection (g)(1) is |
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outside the treasury and the comptroller may make a payment from the |
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account without the necessity of an appropriation. |
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(i) Before sending any money to a municipality under |
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Subsection (g) and subject to the limitation provided by this |
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subsection, the comptroller shall deduct and deposit to the credit |
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of the general revenue fund an amount equal to one percent of the |
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amount of the taxes collected from rentals of short-term rentals |
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located in the municipality under this section during the period |
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for which a distribution is made as the state's charge for services |
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provided by the state under this section. The comptroller may not |
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deduct from the distributions to a municipality more than $50,000 |
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in each state fiscal year under this subsection. |
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(j) If the short-term rental marketplace enters into an |
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agreement with a third-party vendor under Subsection (c)(2), the |
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vendor shall report and remit to a municipality that approved the |
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agreement all taxes imposed by the municipality under this chapter |
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and collected by the short-term rental marketplace on rentals of |
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short-term rentals located in that municipality at the times and in |
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the manner provided by the agreement. |
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(k) Notwithstanding any other law, this section applies to |
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the collection, remittance, and distribution of taxes imposed by a |
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political subdivision that is authorized to impose a hotel |
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occupancy tax under a provision of the Special District Local Laws |
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Code or civil statutes in the same manner the section applies to a |
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municipality authorized to impose a hotel occupancy tax under this |
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chapter. |
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(l) The comptroller may adopt rules to implement and |
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administer this section. |
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SECTION 3. Subchapter A, Chapter 352, Tax Code, is amended |
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by adding Section 352.0042 to read as follows: |
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Sec. 352.0042. TAX COLLECTION BY SHORT-TERM RENTAL |
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MARKETPLACE. (a) For purposes of this section: |
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(1) "Booking charge," "host," and "short-term rental |
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marketplace" have the meanings assigned by Section 156.054. |
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(2) "Short-term rental" has the meaning assigned by |
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Section 156.001. |
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(b) Notwithstanding Section 352.004 or any other law: |
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(1) a short-term rental marketplace: |
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(A) shall collect the appropriate amount of the |
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tax imposed under this chapter by a county in which a short-term |
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rental is located on each booking charge with respect to that |
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short-term rental; |
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(B) shall report and remit all taxes collected by |
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the short-term rental marketplace under Paragraph (A) in the manner |
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required: |
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(i) of a person owning, operating, |
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managing, or controlling a hotel under this chapter and in |
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accordance with the order adopted by the county imposing the tax; or |
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(ii) if applicable, by an agreement under |
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this section; and |
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(C) is considered to be the person owning, |
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operating, managing, or controlling the short-term rental for |
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purposes of the collection and enforcement of the tax imposed under |
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this chapter; and |
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(2) the host may not collect and is not liable for a |
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tax imposed by this chapter on a booking charge for a rental made |
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through the short-term rental marketplace. |
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(c) A short-term rental marketplace may: |
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(1) enter into an agreement with the comptroller to |
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collect and remit to the comptroller the taxes imposed by a county |
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under this chapter on each booking charge for a rental made through |
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the short-term rental marketplace; or |
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(2) enter into an agreement with a third-party vendor |
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to remit to the county the taxes described by Subdivision (1) that |
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the short-term rental marketplace collects. |
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(d) To be effective, an agreement described by Subsection |
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(c)(2) must be approved by the commissioners court of the county. |
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During the period an agreement described by Subsection (c) is in |
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effect, the short-term rental marketplace shall report and remit |
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all taxes collected by the short-term rental marketplace under |
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Subsection (b) to: |
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(1) the comptroller on a schedule determined by the |
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comptroller, if the agreement in effect is with the comptroller; or |
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(2) the third-party vendor on a schedule determined by |
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the vendor, if the agreement in effect is with a vendor. |
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(e) The comptroller or third-party vendor, as applicable, |
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shall promulgate a form a short-term rental marketplace must use to |
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report the taxes collected by the short-term rental marketplace |
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under this section if an agreement under Subsection (c) is in |
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effect. The form must include the following information: |
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(1) the total receipts from the rental during the |
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reporting period of all short-term rentals located in any county |
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that has approved an agreement under this section and offered for |
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rent through the short-term rental marketplace, categorized by |
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county in which those short-term rentals are located; |
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(2) the total amount of booking charges from the |
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rental during the reporting period of all short-term rentals |
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located in any county that has approved an agreement under this |
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section and offered for rent through the short-term rental |
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marketplace, categorized by county in which those short-term |
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rentals are located; and |
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(3) the rate of the tax imposed under this chapter in |
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each county identified under Subdivision (2). |
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(f) The form described by Subsection (e) may not require the |
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identification of a specific guest or the host of a short-term |
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rental. |
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(g) If the short-term rental marketplace collects and |
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remits to the comptroller the taxes imposed by the county under this |
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chapter in accordance with an agreement under Subsection (c)(1), |
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the comptroller shall: |
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(1) deposit the taxes remitted to the comptroller |
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under this section in trust in the separate suspense account of the |
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county in which short-term rentals with respect to which the taxes |
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were collected are located; and |
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(2) send to the county treasurer payable to the county |
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the county's share of the taxes remitted to the comptroller under |
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this chapter at least 12 times during each state fiscal year. |
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(h) A suspense account described by Subsection (g)(1) is |
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outside the treasury and the comptroller may make a payment from the |
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account without the necessity of an appropriation. |
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(i) Before sending any money to a county under Subsection |
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(g) and subject to the limitation provided by this subsection, the |
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comptroller shall deduct and deposit to the credit of the general |
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revenue fund an amount equal to one percent of the amount of the |
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taxes collected from rentals of short-term rentals located in the |
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county under this section during the period for which a |
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distribution is made as the state's charge for services provided by |
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the state under this section. The comptroller may not deduct from |
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the distributions to a county more than $50,000 in each state fiscal |
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year under this subsection. |
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(j) If the short-term rental marketplace enters into an |
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agreement with a third-party vendor under Subsection (c)(2), the |
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vendor shall report and remit to a county that approved the |
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agreement all taxes imposed by the county under this chapter and |
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collected by the short-term rental marketplace on rentals of |
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short-term rentals located in that county at the times and in the |
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manner provided by the agreement. |
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(k) Notwithstanding any other law, this section applies to |
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the collection, remittance, and distribution of taxes imposed by a |
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political subdivision that is authorized to impose a hotel |
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occupancy tax under a provision of the Special District Local Laws |
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Code or civil statutes in the same manner the section applies to a |
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county authorized to impose a hotel occupancy tax under this |
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chapter. |
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(l) The comptroller may adopt rules to implement and |
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administer this section. |
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SECTION 4. Sections 334.253(a) and (b), Local Government |
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Code, are amended to read as follows: |
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(a) Sections 351.002(c), 351.004, 351.0041, 351.0043, |
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351.005, and 351.006, Tax Code, govern the imposition, computation, |
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administration, collection, and remittance of a municipal tax |
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authorized under this subchapter except as inconsistent with this |
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subchapter. |
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(b) Sections 352.002(c), 352.004, 352.0041, 352.0042, |
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352.005, and 352.007, Tax Code, govern the imposition, computation, |
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administration, collection, and remittance of a county tax |
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authorized under this subchapter except as inconsistent with this |
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subchapter. |
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SECTION 5. This Act takes effect September 1, 2021. |