BILL ANALYSIS

C.S.H.B. 4494

By: Vasut

Ways & Means

Committee Report (Substituted)

BACKGROUND AND PURPOSE

The Tax Code permits certain eligible coastal municipalities to allocate municipal hotel occupancy tax revenue for different purposes than other municipalities, including for certain purposes related to public beaches. The Village of Surfside Beach, which is not currently classified as an eligible coastal municipality due to its small population, has requested this same allocation authority. C.S.H.B. 4494 seeks to broaden the definition of eligible coastal municipality to include a municipality that borders on the Gulf of Mexico and has a population of less than 1,500, such as Surfside Beach.

CRIMINAL JUSTICE IMPACT

It is the committee's opinion that this bill does not expressly create a criminal offense, increase the punishment for an existing criminal offense or category of offenses, or change the eligibility of a person for community supervision, parole, or mandatory supervision.

RULEMAKING AUTHORITY

It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency, or institution.

ANALYSIS

C.S.H.B. 4494 amends the Tax Code to classify a municipality that borders on the Gulf of Mexico and has a population of less than 1,500 as an "eligible coastal municipality" for purposes of the municipal hotel occupancy tax and the authorized uses of revenues collected from this tax.

EFFECTIVE DATE

On passage, or, if the bill does not receive the necessary vote, September 1, 2023.

COMPARISON OF INTRODUCED AND SUBSTITUTE

C.S.H.B. 4494 differs from the introduced only by including a Texas Legislative Council draft number in the footer.