By: West S.B. No. 1189
A BILL TO BE ENTITLED
AN ACT
1-1 relating to the rate at which certain municipalities may impose the
1-2 hotel occupancy tax and to the use of the revenue from the tax.
1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-4 SECTION 1. Section 351.003, Tax Code, is amended by adding
1-5 Subsection (c) to read as follows:
1-6 (c) The rate in a municipality to which Section 351.106
1-7 applies may not exceed eight percent of the price paid for a room
1-8 in a hotel. This subsection expires on September 1, 2013.
1-9 SECTION 2. Section 351.106, Tax Code, is amended to read as
1-10 follows:
1-11 Sec. 351.106. ALLOCATION OF REVENUE: MUNICIPALITIES WITH
1-12 POPULATION OF ONE MILLION AND COUNCIL-MANAGER GOVERNMENT. (a) A
1-13 municipality that has a population of one million or more and that
1-14 has adopted a council-manager form of government shall use the
1-15 amount of revenue from the tax that is derived from the application
1-16 of the tax at a rate of more than four percent and seven percent or
1-17 less of the cost of a room as follows:
1-18 (1) no more than 55 percent to:
1-19 (A) constructing, improving, enlarging,
1-20 equipping, and repairing the municipality's convention center
1-21 complex; or
1-22 (B) pledging payment of revenue bonds and
1-23 revenue refunding bonds issued under Chapter 63, Acts of the 59th
2-1 Legislature, Regular Session, 1965 (Article 1269j-4.1, Vernon's
2-2 Texas Civil Statutes), for the municipality's convention center
2-3 complex; and
2-4 (2) at least 45 percent for:
2-5 (A) the purposes provided by Section
2-6 351.101(a)(3);
2-7 (B) constructing, improving, enlarging,
2-8 equipping, and repairing new or existing structures and amenities
2-9 located within the geographical boundaries of a park that hosts the
2-10 State Fair of Texas and is located within the municipality; or
2-11 (C) pledging payment of revenue bonds and
2-12 revenue refunding bonds issued under Chapter 63, Acts of the 59th
2-13 Legislature, Regular Session, 1965, (Article 1269j-4.1, Vernon's
2-14 Texas Civil Statutes), for the purposes described in Section
2-15 351.106(a)(2)(B).
2-16 (b) A municipality described by Subsection (a) shall use the
2-17 entire amount of revenue from the tax that is derived from the
2-18 application of the tax at a rate of more than seven percent of the
2-19 cost of a room for:
2-20 (1) constructing, improving, enlarging, equipping, and
2-21 repairing new or existing structures and amenities located within
2-22 the geographical boundaries of a park that hosts the State Fair of
2-23 Texas and is located within the municipality; or
2-24 (2) pledging payment of revenue bonds and revenue
2-25 refunding bonds issued under Chapter 63, Acts of the 59th
3-1 Legislature, Regular Session, 1965, (Article 1269j-4.1, Vernon's
3-2 Texas Civil Statutes), for the uses described in Section
3-3 351.106(b)(1).
3-4 (c) Revenue received by a municipality described by
3-5 Subsection (a) from the application of the tax at a rate of four
3-6 percent or less may be used as provided by Section 351.101.
3-7 (d) Sections 351.106(a)(2)(B) and 351.106(a)(2)(C) expire on
3-8 September 1, 2003.
3-9 SECTION 3. If on or after the effective date of this Act a
3-10 municipality increases the rate of the tax authorized by Section
3-11 351.003(c), Tax Code, as added by this Act, the increased tax rate
3-12 does not apply to the tax imposed on the use or possession of a
3-13 room under a contract executed before the effective date of this
3-14 act that provides for the payment of the tax at the rate in effect
3-15 when the contract was executed, unless the contract is subject to
3-16 change or modification by reason of the tax rate increase. The tax
3-17 rate applicable to the use or possession of a room under the
3-18 contract is the rate in effect when the contract was executed, and
3-19 the law governing that rate is continued in effect for that
3-20 purpose.
3-21 SECTION 4. The importance of this legislation and the
3-22 crowded condition of the calendars in both houses create an
3-23 emergency and an imperative public necessity that the
3-24 constitutional rule requiring bills to be read on three several
3-25 days in each house be suspended, and this rule is hereby suspended,
4-1 and that this Act take effect and be in force from and after its
4-2 passage, and it is so enacted.