BILL ANALYSIS C.S.H.B. 2275 By: Place May 2, 1995 Committee Report (Substituted) BACKGROUND Since early 1994, certain field offices of the Comptroller of Public Accounts have contended that colleges and universities are required to collect hotel occupancy taxes from summer program guests who stay less than thirty days in campus housing facilities. These guests participate in educational programs provided by the institutions. Such programs are both a part of the institutions' missions and an important component of their student recruitment efforts. PURPOSE This bill would add colleges and universities to the list of institutions that are not considered "hotels" for the purposes of the hotel occupancy tax. RULEMAKING AUTHORITY It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency, or institution. SECTION BY SECTION ANALYSIS SECTION 1. Amends Section 156.001 (Definition), Tax Code, to exclude from hotel occupancy taxes, a dormitory or other housing facility, owned or leased, and operated by an institution of higher education or a private or independent institution of higher education as defined by Sections 61.003 (8) and (15), Education Code. SECTION 2. (a) Effective Date: First day that it may take effect under Article III, Texas Constitution. (b) Provides that the changes in law, do not affect taxes imposed before the effective date. SECTION 3. Emergency Clause. COMPARISON OF ORIGINAL TO SUBSTITUTE C.S.H.B. 2275 clarifies drafting errors in the original bill, and also specifies that the exemption applies to facilities that are leased and operated by institutions of higher education. SUMMARY OF COMMITTEE ACTION Public notice was posted in accordance with the rules, and a public hearing was held on April 25, 1995. The chair laid out H.B. 2275. Without objection, H.B. 2275 was left pending before the committee. On April 27, 1995, the committee met in a formal meeting, and H.B. 2275 was laid out on pending business. The committee considered a complete substitute by Representative Place. Without objection, the committee adopted C.S.H.B. 2275. By a record vote of 8 ayes, 0 nays, 0 present not voting and 3 absent, the committee voted to report H.B. 2275 to the House as substituted with the recommendation that it be sent to the Local & Consent Calendar, and that it do pass. Testimony received in favor of the bill (4/25/95): Norman Hood, representing himself and the Independent Colleges & Universities of Texas