BILL ANALYSIS S.B. 1530 By: Ellis Finance 04-25-95 Committee Report (Unamended) BACKGROUND The Harris County commissioners court is currently authorized to levy a two percent hotel occupancy tax within the city limits of Houston. Under Section 352.003(b) of the Tax Code, this tax is scheduled to drop to one percent on January 1, 2001. The revenues generated by the tax can be used for activities related to convention centers, civic centers, tourism promotion, and multi-purpose facilities like the Astrodome. PURPOSE As proposed, S.B. 1530 prohibits the county tax rate in a municipality that has a population of 1,200,000 or more from exceeding two percent of the price paid for a room in a hotel. 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 352.003(b), Tax Code, to prohibit the county tax rate in a municipality that has a population of 1,200,000 or more from exceeding two percent of the price paid for a room in a hotel. Deletes reference to January 1, 2001, after which the tax rate may not exceed one percent. SECTION 2. Effective date: September 1, 1995. SECTION 3. Emergency clause.