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