1-1 By: Rodriguez, et al. (Senate Sponsor - Madla) H.B. No. 1264
1-2 (In the Senate - Received from the House April 20, 1993;
1-3 April 21, 1993, read first time and referred to Committee on
1-4 Finance; May 13, 1993, reported favorably by the following vote:
1-5 Yeas 12, Nays 0; May 13, 1993, sent to printer.)
1-6 COMMITTEE VOTE
1-7 Yea Nay PNV Absent
1-8 Montford x
1-9 Turner x
1-10 Armbrister x
1-11 Barrientos x
1-12 Bivins x
1-13 Ellis x
1-14 Haley x
1-15 Moncrief x
1-16 Parker x
1-17 Ratliff x
1-18 Sims x
1-19 Truan x
1-20 Zaffirini x
1-21 A BILL TO BE ENTITLED
1-22 AN ACT
1-23 relating to the rate at which certain municipalities may impose the
1-24 hotel occupancy tax and to the use of the revenue from the tax.
1-25 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-26 SECTION 1. Section 351.001, Tax Code, is amended by adding
1-27 Subdivision (8) to read as follows:
1-28 (8) "Eligible central municipality" means a
1-29 municipality with a population of more than 850,000 that has
1-30 adopted a capital improvement plan for the expansion of an existing
1-31 convention center facility.
1-32 SECTION 2. Section 351.003, Tax Code, is amended by adding
1-33 Subsection (c) to read as follows:
1-34 (c) The rate in an eligible central municipality may not
1-35 exceed nine percent of the price paid for a room. This subsection
1-36 does not apply to a municipality to which Section 351.1015 or
1-37 351.106 applies.
1-38 SECTION 3. Subchapter B, Chapter 351, Tax Code, is amended
1-39 by adding Section 351.1065 to read as follows:
1-40 Sec. 351.1065. ALLOCATION OF REVENUE: ELIGIBLE CENTRAL
1-41 MUNICIPALITY. (a) An eligible central municipality shall use the
1-42 amount of revenue from the tax that is derived from the application
1-43 of the tax at a rate of more than seven percent of the cost of a
1-44 room only for:
1-45 (1) the construction of an expansion of an existing
1-46 convention center facility; and
1-47 (2) pledging payment of revenue bonds and revenue
1-48 refunding bonds issued under Chapter 63, Acts of the 59th
1-49 Legislature, Regular Session, 1965 (Article 1269j-4.1, Vernon's
1-50 Texas Civil Statutes), for the construction of the expansion.
1-51 (b) Any interest income derived from the application of the
1-52 tax at a rate of more than seven percent of the cost of a room may
1-53 be used only for the purposes provided by this section.
1-54 (c) An eligible central municipality expending tax revenue
1-55 under this section shall attempt to include minority-owned
1-56 businesses in the issuance of at least 32 percent of the total
1-57 dollar value of the bonds issued, and in at least 32 percent of the
1-58 total fees paid by the issuer, in connection with the construction.
1-59 SECTION 4. If on or after the effective date of this Act a
1-60 municipality increases the rate of the tax authorized by Section
1-61 351.003(c), Tax Code, as added by this Act, the increased tax rate
1-62 does not apply to the tax imposed on the use or possession of a
1-63 room under a contract executed before the effective date of this
1-64 Act that provides for the payment of the tax at the rate in effect
1-65 when the contract was executed, unless the contract is subject to
1-66 change or modification by reason of the tax rate increase. The tax
1-67 rate applicable to the use or possession of a room under the
1-68 contract is the rate in effect when the contract was executed, and
2-1 the law governing that rate is continued in effect for that
2-2 purpose.
2-3 SECTION 5. The importance of this legislation and the
2-4 crowded condition of the calendars in both houses create an
2-5 emergency and an imperative public necessity that the
2-6 constitutional rule requiring bills to be read on three several
2-7 days in each house be suspended, and this rule is hereby suspended,
2-8 and that this Act take effect and be in force from and after its
2-9 passage, and it is so enacted.
2-10 * * * * *
2-11 Austin,
2-12 Texas
2-13 May 13, 1993
2-14 Hon. Bob Bullock
2-15 President of the Senate
2-16 Sir:
2-17 We, your Committee on Finance to which was referred H.B. No. 1264,
2-18 have had the same under consideration, and I am instructed to
2-19 report it back to the Senate with the recommendation that it do
2-20 pass and be printed.
2-21 Montford,
2-22 Chairman
2-23 * * * * *
2-24 WITNESSES
2-25 FOR AGAINST ON
2-26 ___________________________________________________________________
2-27 Name: Don Hansen x
2-28 Representing: Texas Hotel & Motel Assn
2-29 City: Austin
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