BILL ANALYSIS C.S.H.B. 958 By: Turner, B. (Wentworth) Finance 5-16-95 Senate Committee Report (Substituted) BACKGROUND Currently, Section 352.002 of the Tax Code authorizes certain counties to impose a hotel occupancy tax. If a county is covered under this section, the commissioners court of that county may impose the tax by the adoption of an order or resolution. Section 352.002(a)(5) allows a county to collect the tax if it has a population of 17,500 or less in which there is located a class 1 or class 2 horse racing track, as licensed by the Texas Racing Act. The use of these funds is restricted by Section 352.1032 for general promotional and tourist advertising of the county and its vicinity. PURPOSE As proposed, C.S.H.B. 958 creates a criteria under which a county with a population of 17,500 or less could qualify to collect its hotel occupancy tax independent of the status of its racetrack. RULEMAKING AUTHORITY It is the committee's opinion that this bill does not grant any additional rulemaking authority to a state officer, institution, or agency. SECTION BY SECTION ANALYSIS SECTION 1. Amends Section 352.002(a), Tax Code, to authorize the commissioners court of a county that has a population of 17,500 or less, that has no more than one municipality with a population of less than 2,500, and that borders two counties located wholly in the Edwards Aquifer Authority established by Chapter 626, Acts of the 73rd Legislature, Regular Session, 1993; a county that has a population of less than 10,000 and an area of less than 275 square miles; a county that has a population of 30,000 or less and borders Possum Kingdom Lake; and a county that borders the Republic of Mexico and has a population of more than 250,000 and less than 500,000, to impose a tax on a person who, under lease, concession, permit, right of access, license, contract, or agreement, pays for the use or possession or for the right to the use or possession of a room that is in a hotel, costs $2 or more each day, and is ordinarily used for sleeping. Deletes reference to location of a licensed horse racing track. SECTION 2. Amends Chapter 352B, Tax Code, by adding Section 352.106, as follows: Sec. 352.106. USE OF REVENUE; CERTAIN COUNTIES BORDERING MEXICO. Authorizes the revenue from a tax imposed under this chapter by a county authorized to impose the tax by Section 352.002(a)(11) to be used for the bond debt service, construction, maintenance, or operation of a special events facility with a seating capacity of at least 8,000. SECTION 3. Amends the heading to Section 352.1032, Tax Code, as follows: Sec. 352.1032. New heading: USE OF REVENUE: COUNTIES BORDERING EDWARDS AQUIFER AUTHORITY. SECTION 4. Repealer: Section 352.006, Tax Code (Administration in County With Licensed Racetrack). SECTION 5. Emergency clause. Effective date: upon passage.