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.