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A BILL TO BE ENTITLED
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AN ACT
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relating to the use by certain municipalities of municipal hotel |
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occupancy tax revenue for the enhancement and maintenance of public |
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parks. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subchapter B, Chapter 351, Tax Code, is amended |
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by adding Section 351.111 to read as follows: |
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Sec. 351.111. ALLOCATION OF REVENUE FOR PUBLIC PARKS BY |
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CERTAIN MUNICIPALITIES. (a) This section applies only to a |
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municipality that: |
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(1) has a population of more than 69,000; and |
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(2) is located in two counties, with 90 percent of the |
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municipality's territory located in a county with a population of |
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at least 580,000 and the remaining territory located in a county |
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with a population of at least four million. |
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(b) Notwithstanding any other provision of this chapter and |
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subject to the requirements of this section, a municipality to |
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which this section applies may use a portion of the revenue derived |
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from the tax imposed under this chapter to promote tourism and the |
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convention and hotel industry by enhancing and maintaining public |
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parks the municipality owns. |
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(c) The amount of municipal hotel occupancy tax revenue a |
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municipality may use in a fiscal year to enhance and maintain all |
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public parks may not exceed 10 percent of the amount of revenue the |
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municipality collected from that tax during the preceding fiscal |
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year. |
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(d) The amount of municipal hotel occupancy tax revenue a |
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municipality may use in a fiscal year to enhance and maintain an |
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individual public park may not exceed the amount of area hotel |
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revenue in the preceding fiscal year that was directly attributable |
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to tourists who attended events held at that park or otherwise |
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visited that park. Before the municipality uses municipal hotel |
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occupancy tax revenue to enhance or maintain a park, the |
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municipality must make a good faith estimate of the annual amount of |
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area hotel revenue directly attributable to tourists who visited |
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that park. |
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(e) A municipality that uses municipal hotel occupancy tax |
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revenue under this section: |
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(1) may, notwithstanding the limitation under |
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Subsection (c), reserve not more than 10 percent of the revenue from |
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that tax collected in a fiscal year for use under this section |
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during the succeeding three fiscal years; and |
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(2) may not reduce the percentage of revenue from that |
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tax allocated for a purpose described by Section 351.101(a)(3) to a |
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percentage that is less than the average percentage of the revenue |
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from that tax allocated by the municipality for the purpose |
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described by Section 351.101(a)(3) during the 36-month period |
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preceding the date the municipality begins using revenue for a |
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purpose described by this section. |
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SECTION 2. This Act takes effect September 1, 2023. |