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A BILL TO BE ENTITLED
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AN ACT
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relating to the use of municipal hotel occupancy tax revenue in |
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certain municipalities. |
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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 351.10693 to read as follows: |
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Sec. 351.10693. ALLOCATION OF REVENUE: CERTAIN |
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MUNICIPALITIES. (a) This section applies only to a municipality: |
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(1) with a population of less than 3,000; |
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(2) through which the Blanco River flows; and |
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(3) that is located in a county that: |
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(A) is adjacent to the county in which the State |
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Capitol is located; and |
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(B) has a population of at least 250,000. |
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(b) Notwithstanding any other provision of this chapter, a |
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municipality to which this section applies may use revenue from the |
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municipal hotel occupancy tax for the promotion and preservation of |
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dark skies through construction and maintenance of infrastructure |
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and the purchase and installation of hardware that reduces light |
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pollution and sky glow. |
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(c) Notwithstanding any other provision of this chapter, a |
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municipality to which this section applies may use revenue from the |
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municipal hotel occupancy tax for promotional and event expenses |
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for an ecological tourism event, including an event for which the |
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primary attraction is traveling to an area of natural or ecological |
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interest for the purpose of observing and learning about wildlife |
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and the area's natural environment, if: |
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(1) a majority of the event's participants are |
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tourists; and |
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(2) the event substantially increases economic |
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activity at hotels and motels within or in the vicinity of the |
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municipality. |
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(d) A municipality that uses revenue from the municipal |
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hotel occupancy tax for a purpose described by Subsection (b) or |
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(c): |
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(1) shall determine the amount of area hotel revenue |
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attributable to events and activities related to those purposes for |
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five years after the date the municipality first uses hotel |
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occupancy tax revenue for a purpose described by Subsection (b) or |
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(c); and |
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(2) may not spend municipal hotel occupancy tax |
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revenue for the purposes described by Subsections (b) and (c) in 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 may not spend more than 25 percent of the |
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municipality's annual hotel occupancy tax revenue for the purposes |
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described by Subsections (b) and (c). |
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(f) A municipality to which this section applies may not |
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reduce the amount of revenue that the municipality uses for a |
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purpose described by Section 351.101(a)(3) to an amount that is |
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less than the average amount of revenue used by the municipality for |
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that purpose during the 36-month period that precedes the |
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municipality's use of revenue under Subsection (b) or (c). |
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SECTION 2. 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, 2023. |