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A BILL TO BE ENTITLED
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AN ACT
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relating to the use of hotel occupancy tax revenue by certain |
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municipalities and counties. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 351.10692, Tax Code, is amended by |
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amending Subsections (a) and (c) and adding Subsection (e) to read |
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as follows: |
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(a) This section applies only to: |
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(1) a municipality with a population of less than |
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2,000 located in a county that: |
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(A) [(1)] is adjacent to the county in which the |
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State Capitol is located; and |
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(B) [(2)] has a population of: |
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(i) [(A)] not more than 25,000; or |
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(ii) [(B)] at least 100,000 but not more |
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than 200,000; |
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(2) a municipality located in a county with a total |
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area of more than 6,000 square miles; and |
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(3) a municipality located in a county with a total |
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area of more than 3,850 square miles but less than 4,000 square |
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miles. |
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(c) A municipality that uses revenue from the municipal |
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hotel occupancy tax for a purpose described by Subsection (b): |
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(1) shall make a good-faith estimate based on |
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reasonable documentation of [determine] the annual amount of area |
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hotel revenue attributable to dark skies related events and |
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activities [for five years after the date the municipality first |
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uses hotel occupancy tax revenue for a purpose described by |
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Subsection (b)]; and |
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(2) may not spend municipal hotel occupancy tax |
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revenue for the purposes described by Subsection (b) in an annual [a |
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total] amount that exceeds the amount determined under Subdivision |
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(1). |
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(e) A municipality that uses municipal hotel occupancy tax |
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revenue under this section may not reduce the percentage of revenue |
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from that tax allocated for a purpose described by Section |
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351.101(a)(3) to a percentage that is less than the average |
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percentage of the revenue from that tax allocated by the |
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municipality for the purpose described by Section 351.101(a)(3) |
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during the 36-month period preceding the date the municipality |
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begins using revenue for a purpose described by this section. |
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SECTION 2. Section 352.102, Tax Code, is amended by |
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amending Subsection (c) and adding Subsection (d) to read as |
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follows: |
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(c) A county that borders the Republic of Mexico and that is |
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further described by Section 352.002(a)(14): |
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(1) shall use at least one-third of the revenue |
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collected each fiscal year from the tax imposed under this chapter |
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for the purposes authorized by this chapter in unincorporated areas |
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of the county; and |
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(2) may use revenue from the tax imposed under this |
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chapter in the same manner that a municipality to which Section |
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351.10692 applies may use revenue from the municipal hotel |
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occupancy tax under that section. |
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(d) A county that borders the United Mexican States and that |
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is further described by Section 352.002(a)(7) may use revenue from |
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the tax imposed under this chapter in the same manner that a |
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municipality to which Section 351.10692 applies may use revenue |
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from the municipal hotel occupancy tax under that section. |
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SECTION 3. Section 351.1035, Tax Code, is repealed. |
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SECTION 4. This Act takes effect immediately if it receives |
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a vote of two-thirds of all the members elected to each house, as |
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provided by Section 39, Article III, Texas Constitution. If this |
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Act does not receive the vote necessary for immediate effect, this |
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Act takes effect September 1, 2021. |