Enrolled Bill Summary

Senate Bill 1784 amends the Tax Code to authorize a general-law municipality that borders the Gulf of Mexico and has a boundary within 30 miles of Mexico to increase the hotel occupancy tax rate to a maximum rate of 7.5 percent, if approved by a majority of voters. The bill limits the use of revenue derived from the rate increase to beautifying and improving the access to and safety of the portion of State Highway 100 known as Padre Boulevard and provides that the amount of revenue that may be spent for this purpose may not exceed the amount the municipality spends for the same purpose from a source other than the hotel occupancy tax. The provisions enacted by Senate Bill 1784 are repealed effective January 1, 2006.